A very popular line of products to come out over the past few years has been the ability to borrow more than that value of your property. In most cases you can borrow up to 125% of the value. It has become so popular because of the soaring home values, depending on the area in which you live you could have your property increase by the percentage over 100% that you borrowed within a few years.

But is this product right for you? There are 2 main reasons people obtain these types of loans.

The money required for home improvements exceeds what is readily available. In this case you could possibly be increasing the value of the home with the new improvements or additions.
Debt consolidation, you have reached the point where your oustanding debt is too high and you want to roll it in with your mortgage, however you do not have enough equity.

There are also 2 distinct disadvantages to these loans of which you should be aware.

1. The obivous disadvantage is that you are borrowing more than the value of your property. So if the housing market had a down turn you be be over-leveraged for longer than you expected.
2. The rates on these products are typically alot higher than normal rates.

These programs should not be entered into lightly. Review all the aspects and discuss it with a professional. You can contact one of our trused online lenders to review your situation and whether or not a 125% home equity loan is right for you.