Posted by William Bronchick on January 29, 2002 at 09:29:52:
A 125% loan is legal, but not REQUIRED.
Is this legal… - Posted by Rob Aston (Rob PA)
Posted by Rob Aston (Rob PA) on January 24, 2002 at 21:56:45:
A friend of mine has a house worth approximately 50,000. Well he wanted to refinance the house, and pull some equity out. Well to get to the kicker with this house?
He went to a mortgage company to get refinanced, and the company told him he HAD to finance the house at 125%. Well the $50K house is now worth $62,500; his payments went from $300/month to $750/month. Oh another thing, the Mortgage Company told him his payment would go up $200 from his previous amount. He went in to sign the contract and they added another $250 onto what they told him over the phone (Sounds like they pulled a fast one on him). Are they allowed to do this type of deal?
Sound kind of fishy to do a loan for 125%?
Is this legal? Maybe I can help him out if it is illegal?
All responses would be appreciated, Thanks
Rob