100 Percent Mortgage
A 100% Mortgage is as it sounds. A loan for 100% value of an asset. This type of loan is uncommon in today’s lending market, but prior to 2008 it was a very common loan type. The downside of a 100% Mortgage loan is that it typically comes with higher interest rates and mortgage insurance. This is because a lender is assuming more risk because the loan LTV is 100%.
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