125% Loan

125% Loan
A loan, 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.


Investment dictionary. . 2012.

Игры ⚽ Нужен реферат?

Look at other dictionaries:

  • Loan modification in the United States — Loan modification, the systematic alteration of contactual mortgage loan agreements, has been practiced in the United States since the 1930s. During the Great Depression loan modification programs took place at the state level in an effort to… …   Wikipedia

  • Loan-to-value ratio — The loan to value (LTV) ratio expresses the amount of a first mortgage lien as a percentage of the total appraised value of real property. For instance, if a borrower borrows $130,000 to purchase a house worth $150,000, the LTV ratio is… …   Wikipedia

  • 125 Liberatrix — Infobox Planet | discovery=yes | physical characteristics = yes | bgcolour=#FFFFC0 name=125 Liberatrix discoverer=Paul Henry and Prosper Henry discovered=September 11, 1872 alt names= mp category=Main belt epoch=December 31, 2006 (JD 2454100.5)… …   Wikipedia

  • Savings and loan crisis — The savings and loan crisis of the 1980s and 1990s (commonly referred to as the S L crisis) was the failure of 747 savings and loan associations (S Ls) in the United States. The ultimate cost of the crisis is estimated to have totaled around… …   Wikipedia

  • Duy-Loan Le — Duy Loan T. Le Born 1962 Saigon, South Vietnam Residence Texas Ethnicity Vietnamese Muslim [1] Citizenship USA …   Wikipedia

  • Federal student loan consolidation — Student loans in the U.S. Regulatory framework Higher Education Act of 1965 U.S. Dept. of Education FAFSA · Cost of attendance Distribution cha …   Wikipedia

  • Conforming loan — In the United States, a conforming loan is a mortgage loan that conforms to GSE guidelines.[1] In general, any loan which does not meet guidelines is a non conforming loan. A loan which does not meet guidelines specifically because the loan… …   Wikipedia

  • Savings-and-Loan-Krise — Die Savings and Loan Krise (englisch Savings and Loan Crisis) war eine Bankenkrise in den 1980er Jahren in den Vereinigten Staaten. Über 1.000 Savings and Loans in den USA brachen im Rahmen der Krise zusammen. Der Gesamtschaden betrug über 150… …   Deutsch Wikipedia

  • No. 125 Squadron RAF — No. 125 (Newfoundland) Squadron RAF Active Country United Kingdom Branch …   Wikipedia

  • Matt Tubbs — Personal information Full name Matthew Stephen Tubbs …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”