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Investments glossary

125% Loan

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Quotes of the day:

I wouldn\'t recommend sex, drugs or insanity for everyone, but they\'ve always worked for me.

— Hunter S. Thompson

A 125% loan is a loan—usually a mortgage—with an initial loan amount equal to 125% of the initial property value. For example, if your home is worth $300,000, a 125% loan would let you borrow $350,000.



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