A private mortgage or second mortgage is an option available through MortgageGuys.com when individuals need financial assistance. Such a mortgage can be used by those who have bruised credit, or weak credit but good income and equity. At Mortgage Guys, our brokers can assist you with your financing needs, from extra cash for debt consolidation or home purchase.
Why is a Private Mortgage/Secondary Loan considered a risk by lenders?
Some lenders see a second mortgage as a risky investment, but we don’t. When appropriate a second mortgage can result in becoming free from debt instead of facing life-long debt while freeing up monthly cash flow.
How to Qualify
If you were trying to gain a second mortgage through a traditional lender, you would be required to have a strong credit rating, paperwork showing your income as well as have an existing loan on your home. When you work with Mortgage Guys, the process is much easier. Our brokers view your existing mortgage and consider the home value. We are more interested in helping you secure financing instead of how much you earn with your job or how high of a credit score you have. A second mortgage is not used to replace the first mortgage but is an additional loan on the same property.
Understanding the Benefits
At Mortgage Guys, we have found that secondary mortgages have several benefits, particularly if we do the loan arranging. Credit is less of a factor and the major component is the actual home itself. Our brokers will take a look at your property value and the equity to determine how much funding you will receive. The term of this loan type if also a benefit. A second mortgage loan term is more flexible and can offer interest only payments plus shorter terms. You also have the option to unlock as much as 80 to 90 percent of the value in your home.
What Can the Money Be Used For?
The funds from a second mortgage can be used for anything you like. For example, you can use the money to pay for projects around the home, which can help with resale value. You can take the money and use it to consolidate debts with high interest such as unsecured lines of credit as well as credit cards.
We have seen second mortgages used for a variety of reasons including education for children, long-term care for loved ones, small business growth and more. You use the funds as you like. Our brokers will help you secure the loan, letting you choose how you wish to spend the funds.
If you are looking for a first, second or even a third mortgage, we are ready to help you secure the funds you need.