Mortgage Calculator Me Logo
mortgage calculators categories
How To Get A Mortgage For Investment
Buy To Let Mortgage Refinancing
What Is An Offset Mortgage
Discounted Mortgage
What Is Capped Mortgage
Buy To Let Mortgages
Surviving The Mortgage Meltdown
Mortgage Meltdown
Mortgage Underwriter
What Is Murabaha Financing
mortgage calculators categories
search categories
 
Web This Website

mortgage calculators bread crumb home > Blog

Hard Money Mortgages

The hard money mortgages are mortgage refinancing at a higher interest rate which is offered to borrowers with bad credit history. Using the property as collateral, the borrowers with bad credit history try to get mortgage refinancing on fifty to seventy percent of the market value. Hence, the hard money lenders require equity on the property.

The hard money mortgages started in the 1950s. The term of hard money mortgages are more common in United States and Canada. After the mortgage lenders suffered the meltdown of hard money mortgages on early 1980s and 1990s, the mortgage lenders lowered the loan to value ratio. The financing of property that exceeded the market value was to blame for the meltdown.

Banks or financial institutions would normally reject the financing on extreme case of bad credit history. At the beginning, the borrowers seek the mortgage refinancing on conventional mortgage refinancing. After the borrowers exhaust all possible mortgage refinancing options, the borrowers seeks the hard money mortgage refinancing as the last resort.

The hard money lenders are typically the investors group, trust, or private individuals. Unlike banks or financial institutions, the hard money lenders will take on the risks. In return, the borrowers pay between ten to nineteen interest rates. When the borrower defaults on mortgage payment, the hard money lenders charge between twenty and twenty nine percent. The annual percentage rate would normally ranges between nineteen and twenty eight percent.

The points always exist on hard money mortgages. It is normal to see four to ten points. In return, the borrower prevents the quick sale or foreclosure of the property.

The hard money lenders accept from fifty to seventy percent of loan to value ratio (LVR). For example, the home property has a market value of $300,000. The hard money lenders can lend as much as $210,000 ($300,000 x 70%).

The equity on property must have appreciated for years. The borrowers gain equity on property as the borrowers pays off the mortgage, fixes up the property, and adds capital improvement.

0 Comments:

Post a Comment

<< Home


Tags: morgage calculators, morgage calculator, morgages_, morgages, morgage, mortgage claculator, mortgage calcutator, mortgage caculator
mortgage calculators categories

Mortgage Calculators

Read about articles, facts, real-life stories, resources, and tutorial on mortgage and real estate.

list of partners
mortgage calculators categories
How do you subscribe to Mortgage Calculators Blog
blog xml
Subscribe in NewsGator Online
Add Mortgage Calculators Blog to Newsburst from CNET News.com
Add to My AOL
Subscribe in Bloglines
Add to netvibes
Add to Bitty Browser
Add to Plusmo

Copyright (c) 2005-2009 MortgageCalculatorMe.com. All Rights Reserved.

Information and calculation provided on this mortgage calculators website is for general purposes only. It is not intended to take the place of advice from your mortgage brokers.