2nd Mortgages
2nd Mortgages are an alternative to refinancing, allowing borrowers to borrow against the equity in their property. Most private lenders will provide up to 80% of the loan to value after subtracting the remaining amount on your 1st mortgage. 2nd mortgages are great for short term borrowing goals, like starting a business or venture where you plan to be able to pay the loan back within the term. Another popular scenario would be to use the borrowed funds to renovate and increase your homes value before listing it for sale on the market. Rational thinking is highly recommended when obtaining a second mortgage and you should be well aware of all the risks associated with it.
Private Mortgage Rates
It's important to understand that the world of private lending is very different from banks and other regulated lenders. Different private lenders use different business sense to analyze their risk. The higher the risk, the higher your interest rate would be. You can expect private mortgage rates to always be a fair amount above the industry standard rates but less than other borrowing solutions like credit cards or unsecured loans. To discuss your unique borrowing needs give us a call.
Private Mortgages
Alternative borrowing solutions