125% Second Mortgage

Posted In: Mortgage Basics

There are all sorts of second mortgage options available to homeowners. One that has proved popular in recent years is the 125% second mortgage. With this mortgage you can borrow up to 125% of the value of your home.

Cash for All Seasons

When combined with positive equity, a 125% second mortgage can result in a large amount of cash back, which can be used on any number of things. Pay off your debts, make home improvements, pay for school, buy a new car, or finance your dream vacation.

The slowdown in the housing market has brought a reduction in the number of lenders who offer 125% second mortgages. But if you have an excellent credit score, some home equity, and a home in a stable area, you should be able to still find a willing lender.

Projecting Your Finances

If you're interested in a 125% mortgage, feel free to fill out our simple form. We will then select up to four trusted lenders, who will be able to provide you with more mortgage details.

As with any mortgage, check the fineprint carefully, and try to project where a 125% second mortgage will take you. If you lock in with a low interest rate you can actually save money with a 125% second mortgage when compared to credit card debt or some personal loans. But the wrong situation can also lead to financial stress and the risk of foreclosure.

If you are unsure if a 125% second mortgage is your best option, you can also talk to an experienced mortgage planner and benefit from their knowledge and ethical advice. They can advise you on the pros and cons of a 125% second mortgage and help you complete the first steps to obtaining your ideal mortgage.