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

   

Los Angeles Mortgage Refinance

Mortgage Loan Broker Los Angeles, CA

Los Angeles mortgage borrowers are aware that while the home prices have picked up the pace of increase so has the mortgage rates.What people are not aware of is that those looking to get an FHA mortgage can get the lowest rates and those looking for rates like 3.5% is also available on conventional mortgage.

Los Angeles Mortgage lenders and experts are well aware of the needs of Los Angeles mortgage borrowers.They understand the life style expenses of living in Los Angeles is steep as compared to other states. The income of an average Los Angeles mortgage borrower is higher as compared to most other states. Higher earning dose cover for higher savings but mostly it goes towards covering for life style expenses.

 In 2008 when he had the mortgage crash the rates prior to that were in the range of 5% and then it dropped to 3.5% at the peak of the crisis and now it’s moving to an average of 4%.Not everyone will get the same rate. Like I said Los Angeles Mortgage companies and experts know what truly the local mortgage borrowers are looking for and how the job and income market is doing when it comes to understanding the Los Angeles Mortgage borrower’s expectations.

The refinance cost is the lowest and in some cases you can even qualify for a no cost loan where no part of the cost gets added back to your mortgage.Most borrowers have taken advantage of no cost loan during 2008 and thereafter. So it shouldn’t come as a surprise how a no cost loan is possible. Yes indeed nothing is free. There is a price tag to everything but when you talk to your Los Angeles Mortgage expert. They will be able to work out loan options that works the best for you. Being a high cost area the loan limit size for Fannie Mae and Freddie Mac is higher for Los Angeles. A typical loan limit is about $ 424k where as for Los Angeles it’s much higher. The advantage is that your mortgage is still backed by Fannie Mae and Freddie Mac. Mortgages backed by Fannie Mae and Freddie Mac find an easy sell from investors point of view because they know its backed by the Government agency.

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 .


Article by Roger Shanker