Our list of mortgage prospects with 125% LTV is a narrow, responsive target of homeowners who may be great prospects for refinancing.
A 125% loan is usually a mortgage with an initial loan amount equal to 125% of the initial property value. In other words, a 125% loan has a loan-to-value ratio (LTV ratio) of 125%.
A primary measure of a loan’s risk to a lender is the size of a loan relative to the value (LTV ratio) of the underlying property. A 125% loan is a relatively risky loan as compared to a loan with a LTV ratio of less than 100%, and therefore, according to the risk-based pricing method used by lenders, a loan with a LTV ratio of 125% will carry a higher interest rate than a loan with a LTV ratio of 100% or below.
Homeowners might seek a 125% loan as a refinancing option to give them more access to capital. This could be done as a way to pay off other debts that carry higher interest rates, such as credit cards. The comparatively lower interest rate of the mortgage could mean making smaller payments and a lower principal balance compared with the higher rates of credit cards, which would increase the principal more rapidly.
All of this also means that these upside-down homeowners would love an opportunity to refinance at a lower rate. Besides being a great market for mortgage brokers, this is also a strong source of leads for credit counselors, attorneys, banks and credit unions
Recent Home Buyers with Low Down Payment Percent
Select by sale amount of home, mortgage amount, and transaction date. Available with Scrubbed telephone #s where available. Monthly hotline lists are also available
Existing Homeowners – who may need access to capital
Age 25-54 years, moderate income, with a history of responding to direct mail and/or telemarketing offers. You can also select by the value of the home and the length of ownership. Scrubbed telephone numbers are available on approximately 15% of this file.
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