Mortgage Broker or Assassin? A Banker Who Offers You This Loan May be Trying to Kill You!

What if a banker or mortgage broker told you he's loan you 25 percent above the value of your home? You might believe it sounds great, but I sure trust you'd state no. This is a loan only the most money-hungry and unscrupulous loan officers will sell. Few, if any, banks will make them. There are wholesale lenders, though, who will actually loan 125% of the value of your home.

In other words, if your home is valued at $100,000 and you desire to take as much cash as possible, these lenders will actually loan you $125,000. Obviously, this type of loan is for people who are desperate to get cash, usually to pay off high credit cards or other bills. Although it might look attractive, it's actully a Death Loan.

So, why make I name it “The Death Loan?” Easy. It kills people financially. An honorable mortgage professional person will never offer this type of loan, and if you inquire about it, they should state you what you’re about to read here. When you borrow more than than your home is worth, you put yourself up to fail. Remember, you may pay off some debts with that extra money, but your mortgage payment is going to skyrocket. The interest rates on these loans run between 11% and 14% on average.

Now, the average individual who takes this loan will pay off 10 or 20 thousand dollars worth of debt and experience great, for a short time. What invariably haps adjacent is this individual have cleared credit cards and slowly, or quickly in some cases, gets to run them up again. You see, very few people have got the subject to maintain those balances low (remember, we’re talking about a individual who took this loan, because he ran them up in the first place). Here is where the financial death trap occurs.

The individual have all that original debt, a huge mortgage payment, and now have a house that is deserving $25,000 less than his loan amount. He can’t sell, he can’t refinance his mortgage, and he can’t do his monthly bills; he is probably headed for bankruptcy.

Avoid this loan, at all costs. If a mortgage individual suggests it, I would state you didn’t make enough homework in selecting this person. Ge yourself a new mortgage professional, fast.