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125% LTV (Loan To Value)

125% LTV lets you borrow up to 125% of your home's value. (LTV= Loan To Value.) This loan is most commonly used to consolidate debts. If you apply, this loan will combine all of your debts into one lump sum.

Benefit: One low monthly payment.
Downside: Interest rates are higher than home equity loans and refinancing. You also may not be able to deduct the total loan amount with a 125% LTV. In most cases the only thing that you can deduct is the value of the home.

125% LTV is ideal for owner's that have little to no equity in their home. See Refinancing and Home Equity for more options.

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Mortgage A written agreement to repay a loan. The agreement is secured by a mortgage, serves as proof of an indebtedness, and states the manner in which it shall be paid. The note states the actual amount of the debt that the mortgage secures and renders the mortgagor personally responsible for repayment.

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Home Equity Loan The majority of borrowers use a home equity loan for debt consolidation, like creating one payment to take care of all that credit card debt. The loans are also used for a wide variety of other purposes, such as home improvements, medical expenses, education, emergencies and plan a vacation, etc.

Tip and Pitfall -- Before you secure a loan, consider how you are going to prevent yourself from building up that credit card debt again. Cut up all but one or two cards, quit carrying them with you and start using cash more often.

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Refinance Loans
Refinancing replaces your existing loan with another lower interest rate loan for the same amount. This can save you tons of money when market interest rates drop 1 or more percentage points lower than your present rate. Refinancing can be used to reduce your interest rate, change the term of your loan, or to consolidate your debts.

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Debt Management Are you continuing to pay bill after bill? Does it seem like the more you pay, the more you owe? Are you drowning in debt? Letus help get your life back on the right track. With one of our respected partners we can help you reduce all those bills to one low payment. Get a free consultation with no obligation!

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