A 125 home equity is simply mortgaging 125% of the value of a home. This is sometimes done through one mortgage lender and sometimes this involves a 125 second mortgage. The term 125 home equity can refer to a single fixed rate 125 home equity loan or it can refer to variable interest rate 125 percent home equity line of credit (HELOC).
Although 125% home equity loans usually have high interest rates compared to a traditional fixed rate mortgage, they are usually still low when compared to credit card interest rates and other common debts. This is why it can be advantageous to roll other debt like auto loans, student loans, credit card debt or even medical expenses into a 125 home equity loan as a way to reduce your monthly payments and to roll your bills into a single payment.
If you are looking for this type of loan start by checking with local credit unions and banks. You may, however, find you need to secure a 125 home equity loan through another type of lender or online.
But online lending comes with greater risk. There are all kinds of people trying to exploit the desperate online. You should be particularly cautions of people attempting to sell you 0 down home loans. So if you can find someone willing to work you in person first.
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