Question: > Would you like to consolidate your bills but you have no home equity? > Would you like to do some some improvements but you have no equity to > finance the work?
> Don’t dispair. A relatively new type of home loan is now available > called the 125% home equity loan. <<
> >> These loans aren’t cheap. Rates range from 13 to 16 percent. But on > the other hand they are a lot cheaper than 18 to 22 percent charged by > credit card issuers. <<
> Anyone who uses this type of loan is playing Russian Roulette! Anyone > who uses a credit card to purchase any type of home repair is crazy > unless they KNOW (KNOW 100%) that it can and will be paid off in short > order – very short order. There are hundreds of foreclosures every day > and this type of loan is the start of many. A V O I D them!!!!
Answer: sounds like a certain real estate agent knows that if you owe more on the house than it’s worth, you can’t afford to sell it, hence cutting into the available housing base, thus less listings to go around. If the money is used for home repair, it would seem that maybe the market value might rise? Actually, some of these new 125LTV 2nds, are transferrable to your new house plus there are also 125 LTV PURCHASE mortgages available, thus, you can buy a new house and still pay off the old one at settlement.
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