Refinancing your mortgage can be a lifesaver, especially if you have an adjustable-rate mortgage that's rising. But before you rush to refinance, answer a few important questions about your situation. The following Q&A might help you avoid difficulty down the road.
Lenders and borrowers can team up with other lenders and borrowers to reduce their exposure to risk and increase their profits. These relationships, which come in many flavors, are called participation loans. At one time in life, you may have considered going in on purchasing a boat or a mountain cabin with your friends. It's certainly true that, where money's involved, there's power in numbers. Pooling investment dollars is a popular practice-one that's resulted in the advent of mutual funds, REITs and the like. Participation loans follow the same concept, only the investment at hand is a credit facility.
Whether you're shopping for groceries or looking for a car, you want options. Shopping for a mortgage loan is no different. And there's no better place to find options for a mortgage refinance than with a mortgage broker.
Hard money loans are made by lenders willing to accept greater risks than mainstream mortgage companies and banks. In exchange for providing loans to borrowers who would otherwise be turned down, hard money lenders charge higher interest rates. If you need a loan, and have bad credit or other problems, a hard money loan might be your easiest and best option.