Rather than making monthly interest payments, you can choose to “roll up” the interest until the end of the term and pay it all off with the capital then. The loans are taken out on an interest-only basis and are priced using monthly interest rates. They can be secured on either the property you’re buying or on one you already own, and you can usually borrow up to 75% of its value (known as the loan-to-value or LTV). As they are a more expensive way to borrow than a mortgage, the shorter the term you can take them out for the better. What is a hard money loan?Ī hard money loan lets you borrow money over a short period, which can be for as little as 1 month or for as much as 2 or 3 years, although they are usually taken out for 12 months or less. Your home may be repossessed if you do not keep up repayments on your mortgage. Think carefully before securing debts against your home.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |