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How soon is my Preferred Placement ® form approved?
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The total cost of each loan is graphed above. Usually the longer you intend to hold the loan, the greater the advantage in using a larger down payment due to the fact that you pay less interest over time. A large down payment may be less advantageous, however, if you intend to sell the home, refinance, or pay off the loan in the near future. |
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How much time do I have to select a lender before the approval expires?
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Because of the risk associated with hard money loans, most traditional financing institutions - even those specializing in sub-prime loans - will not issue them. As well, and as to be expected, hard money lenders charge much higher interest rates than traditional lenders and usually require loan terms much more favorable to themselves. For instance, most hard money lenders will only lend from the first position, so that in the event of a foreclosure, they can be sure to recover as much of the loan as possible. |
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It used to be that in order to take advantage of the equity in your home, you had to sell it. These days many property owners are able to take advantage of the equity that they have built up in their property without actually have to sell the property. They usually do this by getting cash back at the closing of a refinance on a home that has greatly appreciated. The cash can come in the form of hard cash or an equity line of credit. Either way, when you get cash back at closing, it is usually structured as a loan secured by the increased equity in your home. Typically, the loan takes second position behind the original mortgage (called a purchase money mortgage), so that in the event of foreclosure the purchase money mortgage is still paid off first. Just like the initial mortgage, the second mortgage decreases the equity in your home until you pay it off.
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How often can I submit my Preferred Placement ® form for approval offers?
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Equity in your home can pay for education, home improvements, automobiles, small business expenses, refinance high interest unsecured debt, or anything else you choose to finance. This is why have designed Home Equity Lines and Home Equity Loans that combine attractive rates, affordable repayment terms, quick loan approvals, and most importantly personal service. |
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