Lenders are making the market for new loans sound so good. Other types of loans are already on the market, and understood. So, how do you get new people to jump on your bandwagon? You offer something that sounds good, but one that not everybody yet understands. That seems to be the case of the 125% home equity loan, too.
The Promise
The promise that is made is to give you 125% of the value of your house for a second mortgage. This way you can enjoy having extra finances to use as you please. You can pay off other debt, fix up the house Cheap T. J. Oshie Jersey , combine both mortgages, go on a vacation, or whatever. The choice is up to you.
What, though, is the truth behind a 125% mortgage? Here are some details. Some of these companies actually want to lend you more money than your house is actually worth. Think about it. Are they really trying to help? With other lenders, it can actually be a little difficult to get 80% of the value of a house (they are the smart ones). Why are these agencies trying to push extra money in your face?
Extra Charges
A number of these companies charge 10% if you want to get a lower rate of interest than what is initially offered. That's just for starters. While they do offer lower rates than what credit cards usually go for Cheap Nicklas Backstrom Jersey , it actually may not be much more, since second mortgages are typically more than a first mortgage. Plus, there is an origination fee, closing costs, and more.
Stay Where You Are
With the extra charges, and owing considerably more than your house is worth Cheap Alex Ovechkin Jersey , you can plan on not moving anytime soon. This puts you in a negative equity situation. Many people who bought houses even last year are finding out that this is not a good situation to be in. It is possible, in a day of unstable housing markets, that your house could also be devalued
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01.06.2019 08:21
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