125% loan

125% Loan

Posted by on Feb 21, 2011 in 125% loan

125% loan is what lenders use to do back in about 2005 when houses were going up very fast and gaining equity by the day.  The lender did these loans often on something like a refinance where they thought a borrower would live in the house for awhile, had great credit, and they thought the equity would catch up pretty fast to make up for the extra difference.  The lender knew that the house and mortgage was always the security,...

Read More »