New home owners often find themselves in a spot. Their mortgage payments are high enough to be uncomfortable, they’re still getting their new lives off the ground and so feel an economic pinch from other expenses, and yet they haven’t owned a home long enough to have built up sufficient equity to borrow against. So what to do?
Recently, financial companies have developed a new plan targeted at new home owners: the 125% home equity loan. these loan plans basically allow you to borrow one-quarter more than your home’s fair market value. Read the rest of this entry »