125% Refinancing with Home Equity Loans Closing Concurrently with a 100% First Mortgage
Nationwide Mortgage Loans is releases the "125% Mortgage Refinance Combo" which involves 1st and 2nd mortgage loans that refinance simultaneously. Now borrowers are able to refinance with a 100% first mortgage and a 125% second mortgage loan that close concurrently.
The recent home equity loan product from Nationwide Mortgage Loans helps consumers get rid of their ARM mortgage loans with piggy-back financing solutions that enable them to consolidate additional high rate debts like revolving credit cards and unsecured adjustable rate loans with a 125% home equity loan.
The average savings for homeowners with this program is about $800 a month. The 1st-2nd combination loans were designed for borrowers who need to refinance adjustable rate mortgages in addition to consolidating credit card debt that exceeds the value of their home. The "125% Mortgage Refinance Combination" reduces the interest paid back when converting compounding interest from credit cards into fixed simple interest loans.
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At this time, Nationwide Mortgage Loans continues to provide fixed home equity loans and credit lines to 125%, as well as piggy-back 90-100% 1st mortgage with 125 second mortgage piggyback loans. The secondary market has been pushing back sub-prime second mortgages, so consumers will begin to notice significant restrictions for bad credit equity financing. The 125 Mortgage Refinance Combo Loans are not for homeowners with bad credit. These 125% home equity combos require full income documentation and income documentation is required. Credit score requirements begin at 660 fico scores, but residual income requirements do exist.
