What Is A Private Mortgage Loan?
A private mortgage is an alternative financing option provided by a private lender when traditional banks or lending institutions decline a borrower’s mortgage or home refinance loan application. Typically, these loans are short-term and interest-only, spanning from 6 months to 3 years.
The benefits of getting a private mortgage:
- Debt Consolidation
- Quick Approvals and Less Hassle
- No Minimum Credit Score Requirements
- Credit Rebuilding Opportunity
- Vendor Take-Back Mortgages
Drawbacks of Private Mortgages:
- Higher Interest Rates
- Interest-Only Payments
- Broker and Lender Fees
