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

Options:

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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