Question:

What is the 125% LTV second mortgage loan used for?

Answer:

The 125% LTV second mortgage loan is often used to consolidate high rate consumer and credit card debt. Especially when homes are depreciating in value, it seems that the no equity 125% second mortgages are the only chance for quick cash. Also, you don't need to refinance your first mortgage, which may have nice low rates, just for a cash-out.

125% LTV no equity 2nd mortgage loans, or a 125% home equity loan (HEL) or home equity line of credit (HELOC) may not be offered by every lender right now. Over equity, standalone second mortgages tend to become rare when home sales are flat, and home values depreciating.

125% LTV is the maximum LTV allowed for home loans. 2nd mortgages and HELs and HELOCs are a great way to access cash without refinancing and you could choose between 3 very similar home equity loan programs, according to your needs.

Also, 125 LTV HELOCs, HELs and 2nd mortgages can be used for combined refinancing with your first mortgage.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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