Important Facts about Home Equity and Hard Money Lending
Why a Home Equity Loan?
Here are the Home Equity Loan Benefits:
Sometimes called a home equity mortgage or second mortgage has several advantages. A Home Equity Loan has a far lesser interest rate than any credit card interest rates.It is a short term, 1 year and can commonly be paid out after 3 months without a consequence. A Home Equity Loan is often not reliant on upon your credit rating.
The once-a-month Payment on a Home Equity Loan is called interest only.
You can use a Home Equity Loan for almost Anything.
Below is a list of a few:
- Debt Consolidation
- Additional Property
- University and College Tuition
- Business Expansion
- Recreational Vehicles
PrivateMoneyLender.ca can position Home Equity Loans as up to 90% of the value of your home.
Home Equity Loans or 2nd Mortgage – What it is and How it Works
What is a Home Equity Loan?
A home equity loan, also known as a second mortgage is, as it says, money that is borrowed against the equity of your home.
How Does Home Equity Loan Work?
The 1st step in obtaining a Home Equity loan is to determine the equity you have. Simply put this the value (appraised) of your home minus your current mortgage. The amount that is left is known as your equity and it is the factor that determines available funds for a Home Equity loan or Second Mortgage.
Knowing the above, and based on the qualification of your application PrivateMoneyLender, would offer a Commitment Letter that specifies all terms, fees, conditions and the expectation of repayment.
Once all terms are met and agreed upon, the Commitment Letter is then signed alongside all “required” documents. At this time legal commence the authorized mortgage documentation.
The final step before receiving the funds is a meeting with a lawyer or notary. The purpose is to do a final review of mortgage documents, closing costs and signing. The lawyers then prepare funds to be disbursed, register second mortgage with land titles.
It is just that simple. Now you can go and do what you have wanted to do…..Start that new exciting business Venture, Take the kids on a holiday, Build the new place you have been talking about for years. Whatever the case PrivateMoneyLender is there to help and can get you where you are looking to go!
How Long Does It Take To Get a Home Equity Loan?
There are several determining factors and certain areas of the process that rely on signatures, receiving and preparing of documentation and appraisals, when necessary. That said, PrivateMoneyLender.ca has a qualified team that understands, recognizes and appreciate financial urgencies and can often get you your funds in 1 weeks’ time. We have systems professionals that are there for your needs.