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Private Mortgage Loans

by admin on November 28, 2012

Private mortgage loans are primarily for people who have a challenging credit score and in desperate need of quick money. Borrowing from private lenders is a great way to consolidate debts, get rid of high monthly payments and to increase credit scores. Private mortgage borrowers are sometimes faced with power of sale.

A major factor in getting a private loan approved is the equity in your home. The equity of your house is calculated by the market value minus the total amount owed on all of your mortgages. Market value is determined by an appraisal done on your home. For example, if your house is worth 100,000 and you owe 20,000 on your first mortgage and 10,000 on your second mortgage, your equity in your house would be 70,000. (100,000-20,000-10,000= 70,000)

Other important factors in getting a private mortgage are the condition and location of the property and personal income. Properties in areas of high demand are preferred by private lenders. Income is important to the lender because it represents the ability to pay.

Private lenders usually have higher rates than banks due to the greater risk involved when lending private money.

We at Maple Leaf Mortgages specialize in arranging private mortgages across Canada. Our vast lender base allows us to assist clients in every situation and property location.

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