Question:

Will a second mortgage lender offer a 125% second mortgage?

Answer:

A second mortgage lender will have tougher requirements for 125% mortgages. Also, it is very likely that stated income over equity loans and credit below 680 will be offered by very few lenders. Due to massive depreciation, most second mortgage lenders offer loans with combined LTV of up to 90%.

However, though 125% second mortgages will be better available in some states, so you might want to check how things are in your state, regarding home equity loans with 125% and 100% financing.

Standalone 2nd mortgages are possible to find online. The good thing about it is that approval is received in 10 minutes. Purchases, however, will take more time.

Second mortgage lenders are likely to cite the same good rates to everybody and the rates on the websites are for prime borrowers only. If you happen to have a lower credit score and they never ask you, walk away. You are wasting your time with advertised rates that are never going to apply to you.

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Why: Refinance to a fixed rate loan while mortgage rates are still low.
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Common misspellings: mortage and morgage