Need Help Re: 125% equity loan - Posted by Chuck-NY

import · March 26, 2004, 10:49am

Posted by mattg on March 28, 2004 at 10:49:02:

Chuck-
think about it- someone is going to lend you 25% ABOVE your homes value. what kind of risk are they taking???
so forget about any 7% rate- try 11.99% if you are a 700 score borrower and higher if you have less of a score. the cash out also decreases with the lower score. due to the debacle in the early 90’s - the implosion of equity plus and the fact that you can’t paid when there really is no value.these loans have fallen off most of the lenders radar. there are a few that still due them but you need to check with a local broker. NY has some rigid guidelines and some companies that have these loans prefer not to lend in NY.
thanks for asking
Best Regards,
Mattg

import · March 26, 2004, 10:49am

Posted by Chuck-NY on March 26, 2004 at 11:49:23:

I would like to get a second mortgage that would pay off the current 7.4% variable 2nd. mortgage. I need about
116% of appraisal for cap. improvements to subject property. Also should get a lower interest rate.

I’m wondering what the requirements are for this type of loan, what kind of questions should I ask the broker or lender, and what are the downfalls to said loan beside the possibility of having the property value go down in the future.