Mortgage Loan

Private hard money mortgage loans to individuals and small businesses are more difficult to locate than traditional lenders and they are more expensive. But hard money lending for mortgages is an increasingly common way to ref inance or to bridge between traditional loans or other financing and in some cases it can be the financing option of last resort, or the financing option that simply makes the best business sense. Hard money mortgage lenders are not loan sharks though. Hard money lenders charge interest rates and fees and will base lending decisions on equity in the real estate being financed. The question asked by any hard money mortgage lender is “Can I still turn a profit, even in foreclosure.”

Hard Money Mortgages to Avoid Foreclosure

Hard money mortgage lenders are often a last resort for borrowers facing foreclosure and whose delinquency reaches 120 or 180 days. An increasing number of hard money mortgage loan recipients fall into this category. Mortgage brokers are happy to match up borrowers with lenders and Hard Money Tree should be able to find you the best possible rates on a hard money or private mortgage refinance loan. Before refinancing though you account for any and all closing costs and be sure that you can you afford to refinance. If the amount of the closing cost exceeds your current mortgage cost you may not benefit from refinancing.

Private Money Mortgage Lending Expertise

Private Money Mortgage Lenders understand the real estate business backwards and forwards. Financing, interest rates and closing costs are part of the everyday oil that keeps their wheels turning and it is doubtful that you can find someone inside the finance industry who knows both the inside and the outside as well as does a hard money mortgage lender. In many cases, a private money mortgage financer will offer you more and better expertise, and even advice, than anyone working on the inside of a mainstream lending institution. Hard money mortgage lenders are looking for secure investment opportunities. A private money mortgage loan is secured by the real estate itself, and with 10-30% equity, a hard money mortgage lender is well protected and receives a higher interest rate return. But they can also work as a partner to see to it that your mortgage, with the right backing, is treated as the investment that it is. Refinancing a mortgage with hard money to avoid foreclosure can actually help you to put more money toward the principle and less towards commissions and closing costs, even if the interest rate is somewhat higher.

Hard Money Loan Types: