Refinacing Hard Money Loan | Los Angeles

Refinancing mortgage from Hard money lender to a Fannie Mae Lender

This article will help those Mortgage Borrowers in Los Angeles who are looking to come out of hard money lender and to switch to a standard lender.Not many people are aware that there is a special segment of mortgage category which is called hard money lender. These lenders essentially play in equity and are willing to do mortgage which a standard bank wouldn’t do at a high interest rate.They basically try to cover their risk by offering very high interest rate and make sure that the borrower has good equity in home where if the borrower defaults, they can cover the risk selling the property.

What is offered to the borrower is No income no asset no document loan at a very high closing cost. We don’t have any hard money lenders with us. So the borrowers looking for hard money lender should not contact us instead this article is meant to help those who wish to come out of hard money lenders.

Some borrowers prefer hard money lender as a short term loan for may be two years where they would like to get their documents and everything in order to come out of the situation.

No one likes to pay double digit interest rate so the ones who do go for such loans are essentially such borrowers who are going through hardships and do not have pieces relevant to mortgage refinance through proper channel in order.

Now assume a situation, where the borrower has million dollar in bank account and wants to get his mortgage done for $ 400,000. With no income on paper and just asset to show that he has a million in his bank account. No bank would be in a position to help the borrower. 

The borrower could decide to go for Hard Money Lender as a short term proposition for two years. File his tax returns with improved income to show to the bank and after two years come back to standard mortgage from a standard bank or lender.Hard money lending is very very quick. The hard money lender is essentially interested in knowing whether the mortgage has 50%-60% equity in the home or not If the normal rate in the market is 4.5%. The borrower will get a rate of 10%. Precisely why all borrowers who go in for hard money lender do not stick to them but is taken as a temporary loan to come out.

If you are a Los Angeles-California mortgage borrower and want to come out of mess of hard money lender. You need help of a mortgage expert.

For more information visit www.affordable-payment.com or call 323-705-3191 if you are a California Mortgage borrower or If Texas Mortgage Borrower call 713-463-5181 EXT 154. You can even e mail at roger@affordable-payment.com

Article by Roger Shanker