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125 Home Equity Loans
We offer fixed home refinance loan rates for debt consolidation and refinancing up to 125% with cash out options. For borrowers who do not qualify for a 125% loan, Nationwide provides fixed rate refinancing solutions with FHA home loans.
 The FHA refinance loans are available with cash out up to 95% and credit scores are not a qualifying factor!
No Equity is required with loans for cash out financing home improvements and refinancing high rate bills. Home equity loans provide first time homebuyers a method to finance home improvements without waiting years for their home to naturally appreciate.
Our home equity loans also help create opportunities for homeowners to consolidate adjustable rate debts into a fixed rate mortgage for increased "hard-dollar" savings.
Our home refinance loans from 95 to 125% have been increasing popularity in many real estate markets because of the trend of declining property values reported in California, Florida, Georgia, Maryland, Virginia and Washington.
Many new homeowners have incurred additional debt from charging new furniture to revolving credit cards. Credit card debt is the last thing that first time homebuyers need at a time when every dollar counts. No equity is needed to qualify for loans to 125%, but 700 credit scores are the minimum with the present secondary mortgage crisis.
The home refinance lenders we have partnered with are considering your credit as the collateral and more weight is put on your income to qualify for these high LTV 2nd mortgages. For example, if your 1st mortgage balance is $200,000, and your home is also worth $200,000, we can offer you a $50,000 home equity loan, even though you have no equity earned in your home.
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Home Equity Loans can help you get your finances back on track! |
Home Equity Loan Testimonial |
The Dalton family bought a new home a few years ago in Fresno, California. After three months in the new home, they found themselves with $30,000 worth of credit card debt due to the need to make cosmetic home repairs and the cost of the purchasing new furniture. The Daltons found a great solution with the 125% home equity loan.
Since the housing market had been shaky in California they did not have enough equity to take out a traditional second mortgage, so they needed a loan that would enable them to exceed the value in their home and still offer enough cash to consolidate the variable interest that was compounding each month.
According to Mrs. Dalton, "the 125% loan gave us some breathing room because it took our four adjustable rate credit cards and rolled them into a fixed rate loan even though we had no equity. This loan helped us get control of our finances so the transition with our new home was eased significantly." |
Consolidate Bills, Credit Cards & Debt with a Home Equity Loans to 125%. |
The 125 loan allows consumers to exceed the appraised value and borrow an additional 25% worth of equity. The popularity of this no equity mortgage continues to rise, as the demand for debt consolidation continues to grow as well. Homeowners are able to pay off credit cards, installment loans, and unsecured loans as well. Consolidating your debts into one mortgage payment can reduce your monthly expenses by a few hundred dollars.
| What is the origin of 125% home loans? |
| Back in the mid 1990's lenders came up with a 2nd mortgage that allowed homeowners to go beyond the 100% threshold that had been the maximum for decades. Other than the Title 1 loans, the 125% home equity loan was the 1st mortgage that allowed borrowers to exceed the value of their home.
The Title 1 loans were limiting, because they were offered specifically for funding home improvement projects and they were limited to a maximum loan amount of $25,000. 125% home loans enabled borrowers to get larger loan amounts for debt consolidation as well as get additional cash out for home construction projects. |
125% Home Loans are perfect for First Time Homeowners with no equity! |
Useful Loan Tips from the 125% Home Equity Experts |
- 125% Home Equity Loans
- Fixed Rate Second Mortgages
- Home Equity Lines to 125% Loan to Value
- 1st Time Home Equity Loans
- Interest Only Home Equity
- Stated Value Home Equity Loans
>> Also Consider Our High LTV Second Mortgage Loans
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Home Equity Loan Considerations |
| Home Equity Value |
Credit Score |
Home Equity Rate Type |
| The amount of equity you have in your home is derived from the mortgage balances and your home’s appraised value.
"Loan to Value" is the term commonly used to describe the level of equity in your home. 125% LTV occurs when the 1st and 2nd mortgage exceed the home’s value. |
Credit Scores play a crucial role in determining the interest rate you qualify for.
The higher your credit score the more options you will have at the best possible mortgage rate. Unfortunately the lower your credit score, usually the higher the rate. |
Consider the type of interest rate for your 1st or 2nd mortgage. If you are refinancing debt then a fixed interest rate is recommended.
If you are financing home improvements then a variable rate may work best for a short term. |
Do you ever consider home improvements, like adding a new deck?
Getting your roof replaced? Or remodeling the kitchen?
Defining a "125% Home Equity Loan" - (also called "No Equity Loan") |
The 125% Home Equity Loan is a secure 2nd mortgage that disperses a lump sum of money at the time escrow funds the loan. Like the traditional home equity loan, the money is borrowed against home, but unlike the traditional loan, no equity is required. Because equity is taken out of the equation, credit and debt to income ratio become the driving factors for lending considerations. 125% equity loans are liens recorded in 2nd position on the deed to the title securing your home.
Payments are due monthly with terms of a fixed simple interest rate with a fixed amortization schedule. No annual fees with fixed rate home equity loans
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Consolidate Your Debt and Lower Your Monthly Payments with a
Fixed Rate 125% Home Equity Loan |
Loan Amount |
Current Payments |
Home Equity Payment* |
Monthly Payment Savings |
$30,000 |
$695 |
$294 |
$301 |
$50,000 |
$1,145 |
$490 |
$655 |
$80,000 |
$1,792 |
$784 |
$1,008 |
*This is a sample of refinanced credit debt and assumes interest rate for the
125% Home Equity Loan at 11.25%. Apply Now and find out how much you can save! |
| 125 Home Equity Loans |
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Fixed Rate- Simple Interest Loan |
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125% of Home Value |
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Cash Out for Home Improvement |
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Consolidate Credit Card Debt and
Save! |
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No Equity Required! |
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Refinance all of your bills into
1 Low monthly Payment. |
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No Mortgage Insurance |
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First Time Homebuyers OK |
>> 125% Concurrent 1st & 2nd Mortgage Refinance -- Get Started |
Equity Loans to 125% - Debt Consolidation Solutions
By Amber Smith |
Have you ever wished that you could get more than you home is worth through a 2nd mortgage? Well, you can. It's called a home equity loan to 125% loan. When you choose to obtain a home equity loan to 125%, you will receive a loan in the amount of 125% of your home's worth. You can use the extra money to pay off bills consolidate debt.
Usually, home equity rates are based on the Wall Street Journal Prime Rate as are Home Equity Lines of Credit to 125%. You can find this rate in the Money Rates section of the Wall Street Journal. In order to get this number, they keep tabs on the 30 largest banks, and when three-fourths of those banks change their interest rates, the Wall Street Journal publishes the new rate.
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Sometimes, banks and lending agencies will work off different rates including the LIBOR Index, MTA Index, and Federal Reserve. For years, Alan Greenspan has been chairman of the Federal Reserve, controlling interest rates and trying to keep the market from crashing or housing bubbles from occurring.
Fixed or Adjustable
You have a couple of options when you get a 125% home equity loan. You can choose either a fixed or an adjustable interest rate. There are pros and cons to both, depending on the rate being used and whether it is currently high or low.
Fixed rates will lock you in at a specific rate for the life of your loan. Although you'll know up front exactly what you'll owe in interest, you may be stuck paying more if rates fall. On the other hand, adjustable interest rate loans generally offer a trial fixed rate for 1 to 5 years before transferring to the current rate at that time. For complete article Continue Here. |
Linda's Helpful Hints for people who have No Equity
Ask Linda? |
People who don't have any equity in their home used to pout, when people would talk about getting cash out, or adding a pool, etc. Now those people can get cash out for home construction or bill consolidation with a 125% home equity loan. |
What type of home equity loan is best for me? Equity Line of Credit? or Fixed Rate Home Equity Loan?
Homeowners now have more financing options than you've ever had, so it's imperative that you choose the right home equity loan for reducing your monthly expenses. You need to find the right 2nd mortgage that offers the lowest rates, while offering the best long-term solution.
Many people are lured by the reduced payments of home equity credit lines, because only minimum payments that cover the interest are due. No portion of the minimum monthly payments goes towards paying down the principal of the loan. If you only pay the minimum payment of interest, then your balance could grow like a credit card. We suggest that if your goal is debt consolidation that you consider a fixed home equity loan.
Getting Ready for Refinancing a Home Equity Loan |
If you are gearing up to refinance your home equity loan, here are a few things you should have before you start the process. First, decide whether or not you are doing a "Stated Income" second mortgage or a Full Documentation loan. If you plan on doing a 125% home equity loan, then you will be required top provide full documentation, that will include 2 years of income documentation, current pay-stubs, note, mortgage statement, and info for homeowners insurance.
If you are going "Stated Income" loan, then you will not need income documentation or pay-stubs, but some loan programs will require you to document 3-6 months worth of reserves. Each month of reserves will be measured as enough cash to cover the mortgage payment, property taxes, and hazard insurance. Ask your loan officer if the rate will be higher if you opt for the "Stated Income" loan.
Home equity loans from Nationwide Mortgage Loans, will take 2-3 weeks to close, in most cases. We suggest that you get your documentation ready, and fax it over to the loan officer as quick as possible. We also recommend that you review your loan disclosures with an advisor that you trust. It is important to ask your loan officer any question that for any thing that you need clarification on.
FAX your Documentation to 1-800-262-2070 Attention Home Equity Approval Dept.:
(last 2 pay-stubs, last 2 years of W2's or 1099, mortgage statement, note, and homeowners insurance info) |
| To learn more about
125% Second Mortgage Click Here |
How do I figure out how much I can borrow?
To Calculate how much you can borrower follow this simple formula for figuring out combined loan to value (cltv).
Existing Mortgage Balance___ + proposed 2nd mortgage ____ (divided the sum by property value) = Combined Loan to Value
For Example: $200,000 mortgage + $50,000 2nd mortgage = $250,000 (Divide by $200,000 ) = 125% cltv
What are my home equity financing options if our appraisal indicates that we have no equity?
If you have no equity in the home, your loan options will be limited. However, Nationwide Mortgage Loans offers home equity loans up to 125% cltv of your home's appraised value. Credit score, mortgage history and debt to income ratio will also be factors in qualifying for a 125% home equity loan.
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| Resource Tools |
Loan Comparison Calculator
This calculator will help you to compare the total mortgage interest charges of 4 types of loans.
Refinancing Calculator
Analyze the benefits of refinancing. Get help calculating the monthly payment and discover the net interest savings. It will also calculate how many months it will take to get a return on investments for the mortgage loan costs.
Find the best loan in your state
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| Free Finance Guides & Helpful Consumer Reports |
Take advantage of our free guides and disclosures that help 1st time homebuyers.
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| Client Testimonials |
"The loan officers at Nationwide were knowledgeable, friendly and helpful. We really liked the extra help addressing all of our financing questions and concerns. I look forward to sending my friends and family your way for refinancing!"
– Jim and Janet T.
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