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Investments glossary

125% Loan

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Quotes of the day:

I\'m in favor of legalizing drugs. According to my values system, if people want to kill themselves, they have every right to do so. Most of the harm that comes from drugs is because they are illegal.

— Milton Friedman

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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