Hard money refinance loan is a loan that has been backed by an investment company or private investor. Hard money loans are intended to be short-term solutions. As more Americans fall into foreclosure, they might be forced to use hard money refinance to save themselves.
For homeowners facing foreclosure, a hard money loan can be a viable option. These loans are quick to fund and can help you save your home from being sold.
A hard money loan can also be an option for homeowners with poor credit scores. If your credit score is below 500, Sub Prime lending is not possible. Hard money loans are often the only option.
You can also hire the best hard money lending service in Fort. Lauderdale.
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Hard money loan interest rates are typically between 10-and 18%. However, this range can vary from one lending investor to another. The amount of equity required in your home is one thing that remains constant.
Hard money lenders will typically only lend between 65%-70% of your home's appraised value. This will vary depending on investors and where you live. Hard money lenders may charge points to the borrower.
These points are another way that a hard money lender makes money. The average point for a residential loan is 5-7 points. One point equals 1 percent of the loan amount. This can make it quite costly for larger homes.
Although the fees and interest rates will be significantly higher than conventional or subprime loans, hard money refinance can offer homeowners with credit problems a short-term solution to their debts or save their homes.