Be Careful With 125 Loans
Many borrowers think they have found the perfect loan — the 125. But you should be cautious when considering this product. A 125 loan is named for the amount of equity you can pull out of your home, which is usually 125%. Some of the loan is secured by your home and some of it isn’t, making it a mixed loan type. The portion that is unsecured causes your interest rate to be higher than with a fully secured home equity loan. Many borrowers turn to 125 loans because they can simply make one paym
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