125% Loans
A 125% loan is a special type of second mortgage that allows you to borrow up to 125% of your home's value, regardless of how much equity you have in your home.
They are an option for debt consolidation since they will significantly reduce your payments, or for large home improvements or other big-ticket purchases.
As with all home equity loans, their advantages and disadvantages need to be carefully considered, since your home is collateral for the loan!