Home ownership often starts from an achievement point of view. We are happy we made this part of our American dream a reality. However, over time of owning a home and living one’s life, raising a family, facing a layoff or job change or lack of a job, health issues, unexpected expenses and the like, many of us end up needing a financial boost. Such a boost can come quickly from a private mortgage lender. Get the facts about Private Lender In North York see this.
If your credit rating is strong, you might not ever consider the higher interest rate and short payback period of a loan against your home’s equity from a private party. However, you might have other reasons for still doing this type of loan. For example, you might not want a short term loan made public as it is just a means to an end to resolve some unexpected financial crisis. On the other hand, if your credit rating is weak, a private lender could be more of interest to you.
A private mortgage lender needs to confirm you have equity in your home or real property that they can capitalize upon should you fail to make payment on the short term, high interest loan. The lender can be an individual or a company. The paperwork and time to process the loan is very short due to the fact that unlike conventional bank or institution loans, private lenders are only concerned with the property’s value and not with you or your credit rating.
With the equity in your property, a private mortgage lender will likely give the go-ahead on your loan amount and fund you within as little as 10 days. However, you want to be clear that you can handle this type of loan since the interest rate can be as high as 18 percent and the payments are quite high too since the intent by the investor lender is to get a return on their money fast.
When the loan is made, a second or third mortgage is added to your title deed, further encumbering your property. If your original mortgage has been paid off, the private mortgage loan becomes the primary or first trust deed on your property.