125% Loan

Business, Legal & Accounting Glossary

Definition: 125% Loan


125% Loan


Full Definition of 125% Loan


A secured mortgage loan where the homeowner can borrow up to 125 percent of the value of the property, usually at a higher interest. This is considered a very risky, speculative method of home financing. For example, if a home is valued at $100,000, the homeowner would be eligible for $125,000 as a loan.


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125% Loan. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/125-loan/ (accessed: November 30, 2021).
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125% Loan. PayrollHeaven.com. Retrieved November 30, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/125-loan/

Definition Sources


Definitions for 125% Loan are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 13th November, 2021 | 0 Views.