Rick Bossom, AMP

Here's what you should know...

A private mortgage is basically the same as a bank mortgage except the lender is a private individual or company.  While the lender holds the property as collateral (like a bank), less consideration is given to the credit rating and income of the borrower.  If you do not fit into the guidelines of a bank because of a low credit rating or income, a private mortgage may be your best option.  Private mortgages are more expensive but they can save you a lot of money and grief; here are a few examples:

-Use a second mortgage for debt consolidation  (save on interest costs)

-Avoiding prepayment penalties if refinancing is required (use a 2nd until the first mortgage is up      for renewal)

-Short term financing without difficulties of  more rigid qualification guidelines

-Using a second mortgage to avoid paying high ratio mortgage insurance premiums

-Temporary credit or income problems (explained further below)

The term (mortgage contract) of a private mortgage is usually for one year and an interest rates can be from 5.75% to 11.5% for a first mortgage or 8.65% to 15.90 percent for a second mortgage.  Because lender risk, market demands and the property itself all affect what interest rate will be charged, it is best to call or contact me for the most up to date and accurate information possible.

How would a private mortgage help you in times of need?  If you have credit problems a private mortgage term of one year will give you the time to correct most problems that would cause your credit rating to report poorly.  Also, if your income (or ability to show income) is challenged, again a private mortgage looks more to the property than the borrower.  This allows you time to change your income or your ability to show your income.  the bottom line is a private mortgage buys you time to repair a situation when conventional lenders say no.

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