How to Get a 125 Percent Home Equity Refinance Loan

by Contributor ; Updated April 19, 2017
125 loan

If you have high credit card debt and own a home, a 125 percent refinance home equity loan could be for you. A 125 Home equity loan allows you to borrow 125 percent of your home's value in one mortgage. Often the rates are slightly higher than a typical mortgage, but much lower than your credit cards.

Step 1

Call your local banks and ask if they do 125 percent home equity loans. Many will tell you no. The truth is, you will have a much easier time finding an online bank to do this, and the process is much simpler. Often you never meet face to face with the lender doing the 125 home equity loan.

Step 2

Once you select a company, they will call you. They will need to know your current mortgage balance. The total of your first mortgage and your new second mortgage can equal 125 percent of your home's appraised value. This can often be done even if you have just purchased a home.

Step 3

The lender doing your 125 percent refinance home equity loan will send you all your documents electronically. You will then sign them electronically.

Step 4

As with any mortgage, it will go through underwriting. Once this is complete you will receive checks overnight written directly to your credit card companies and one to you for any remaining cash. This money is yours to do whatever you like. The advantage of a 125 percent home equity refinance loan is one payment to pay off your debts.

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