125% mortgages are next

With the decline in values leaving many Americans upside down the mortgage industry will again turn to higher loan to value ratios for borrowers with good credit. A 125% second mortgage allows homeowners to borrow up to 125% of the equity in their home. You must maintain good credit to qualify. This is not a subprime program. Scores of over 700 also allow statistical appraisals rather than full appraisals.

These loans allow you to exceed the appraised value and borrow an additional 25% worth of equity. The popularity of this no equity mortgage continues to rise, as the demand for debt consolidation continues to grow as well. This provides the ability to pay off higher interest rate items like credit cards. Consolidating your debts into one mortgage payment can reduce your monthly expenses and in some cases this will be a life saver.

Popularity: 2% [?]