Private Mortgage NiagaraIf you have a poor credit rating, a private mortgage loan could help you finance the purchase of a home.
A private mortgage is a short-term loan that usually ranges from one to three years. Private mortgages are often interest-only loans, meaning that the homeowner makes monthly interest payments instead of covering the principal down. A private mortgage may be your best option if you find yourself in circumstances such as:
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Private lenders don’t focus on your credit rating because they are more interested in your ability to repay the loan. If you can prove you have income, they can help.
The interest rates for private mortgages are often higher than rates with traditional lenders. Interest rates with traditional lenders are around 3-5%. There are few regulations around private mortgages, so private lenders typically charge 20% interest on loans. If you’re looking to secure a private mortgage, make sure you can access enough funds to cover a higher-than-market interest rate.
Private mortgages should be considered a short-term solution to financing your home. While some private mortgages have been known to span decades, it’s best to try to limit your private mortgage term to five years. This allows for flexibility if the relationship between you and the lender changes or if your credit rating improves. To make sure that you’re getting a fair deal, it can be useful to:
When looking to secure a private mortgage, you should enlist the help of an experienced lawyer or mortgage broker. These professionals will match you to the right private lender and make sure that you get a fair deal on your mortgage loan. If you use a broker, you will be directly responsible for paying their fee as well as any setup costs for the private loan. The costs for a broker can amount to 1-3% of the loan. Luckily, these fees can be covered with the mortgage loan. When you apply for the loan, make sure to add the costs for expected broker or lawyer fees to the amount you need to borrow for the private mortgage.
The interest rates for private mortgages are often higher than rates with traditional lenders. Interest rates with traditional lenders are around 3-5%. There are few regulations around private mortgages, so private lenders typically charge 20% interest on loans. If you’re looking to secure a private mortgage, make sure you can access enough funds to cover a higher-than-market interest rate.
Private mortgages should be considered a short-term solution to financing your home. While some private mortgages have been known to span decades, it’s best to try to limit your private mortgage term to five years. This allows for flexibility if the relationship between you and the lender changes or if your credit rating improves. To make sure that you’re getting a fair deal, it can be useful to:
- Consult a lawyer who has experience with private mortgages
- Read all of the details and fine print in the mortgage agreement
- Work with a mortgage broker or financial advisor to make sure that a private mortgage is an affordable option
- Make sure you understand all of the conditions in the mortgage agreement
- Consider how you’re going to pay off the mortgage
When looking to secure a private mortgage, you should enlist the help of an experienced lawyer or mortgage broker. These professionals will match you to the right private lender and make sure that you get a fair deal on your mortgage loan. If you use a broker, you will be directly responsible for paying their fee as well as any setup costs for the private loan. The costs for a broker can amount to 1-3% of the loan. Luckily, these fees can be covered with the mortgage loan. When you apply for the loan, make sure to add the costs for expected broker or lawyer fees to the amount you need to borrow for the private mortgage.
If it becomes difficult to secure a loan from banks or other financial institutions, a private mortgage can help you finance the purchase of a home. Private mortgages work well for those with poor credit or irregular income because private lenders are willing to overlook credit ratings. As long as you can prove that you have income and are capable of paying off the loan, you’ve got a good chance of being approved by a private lender. I can also help with approval and making sure that you get a fair deal on your private mortgage. Take advantage of my expertise and let me help you read the fine print to secure a private mortgage that meets your needs.
Just call me at 289-272-5335 and let's get a deal done!
Just call me at 289-272-5335 and let's get a deal done!