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Interest on Hard Money Loans

5 Things to Know About Interest on Hard Money Loans

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Spend a few minutes online and you can easily figure out the prevailing interest rates on all sorts of loans. From mortgages to car loans and personal loans, banks are not shy about disclosing their rates. The same is not true for hard money and bridge loans. You won’t find any information about their interest rates online.

Why is that? Because private lenders do not base interest rates on the same factors that banks utilize. They don’t care about the federal funds rate or the yield on 10-year T-bills. Hard money lenders base their interest rate decisions on a number of unconventional factors.

Below are five things to know about interest rates on hard money and bridge loans. They should make clear why hard money lenders do not advertise interest rates.

1. The Supply and Demand Influence

Hard money lenders operate businesses subject to supply and demand influences. When demand is high and supply is low, prices go up. The opposite is also true. So when there is a large concentration of hard money lenders making deals in a limited geographic area, interest rates tend to be lower.

Salt Lake City’s Actium Partners says that hard money lenders tend to concentrate their efforts locally. This explains why supply and demand influences private lending to different degrees in different geographic locations.

2. Collateral and LTV Ratio

Hard money and bridge loans are secured by collateral. In most cases, that collateral is real property. Thus, lenders pay close attention to the loan-to-value (LTV) ratio of a given loan proposal. That ratio partially determines the interest rate. A general rule says that LTV and interest rates are proportional. A lower LTV suggests a lower interest rate.

3. Collateral Resale Potential

Lenders always have to consider the implications of loan default. In terms of collateral this means taking possession and then disposing of the asset through sale. Repossessing and selling collateral property adds to the risk and potential expense of a hard money loan. It makes sense that higher risk properties would lead to higher interest rates.

Collateral resale potential is a bigger influence in areas with risky real estate markets. If you are talking a booming urban area like Salt Lake City, resale potential is less of a concern. But a city where people are moving out faster than they are moving in presents a higher risk for resale potential.

 4. The Borrower’s Timeline

Speed is a definite advantage of hard money lending. Hard money loans can typically be funded much more quickly than bank loans. However, it should be noted that the borrower’s timeline can affect interest rates. The faster the borrower needs the money, the higher the interest rate is likely to be.

5. The Borrower’s Credit History

Finally, hard money lenders generally do not look at a borrower’s credit history when deciding whether or not to approve a loan. Approval is based almost entirely on the strength of the offered collateral. However, that does not mean credit history isn’t in play. It is.

A borrower’s credit history can be a factor when it comes to interest rates. Lenders are smart enough to know that credit history and rating paints a picture of a borrower’s reliability. A good credit history and rating suggests a relatively low risk. Poor credit history suggests greater risk. Lenders will charge higher rates when they believe their risk is higher as well.

And now you know why hard money lenders do not post interest rates online. Determining interest is a case-by-case proposition rather than one relying on static numbers posted daily by the Fed.


Home Forms For Hard Money Loans

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A borrower may find a tough money loan such as home , commercial property, property, and also even industrial on any kind of home.

Some money lenders can concentrate in one property type like residential and be unable to perform property loans because they have zero expertise in this field. Hard money lenders have a market of loan they are comfortable with. Request them upfront that kind of loans they’re equipped and willing to do.

Many hard money lenders won’t give on owner-occupied residential properties on account of the additional regulations and rules. But there are. Whereas fewer will perform position all money lenders can probably do loans at 1st place.

What Kinds Of Deals Need To Hard Money Loans Be Used For?

Hard money loans aren’t suitable for many trades. When buying a main residence with great credit, earnings history, and there are not any problems like a brief sale or foreclosure, or traditional financing by means of a lender is the very ideal thing to do whether the borrower has the enough time to experience the lengthy approval procedure required by means of a financial institution. Hard cash is the source when banks aren’t a choice of funding or even the loan is required in a brief time period.

Who Must Use A Hard Money Loan?

Real estate investors decide to use cash . The chief rationale is the capability of the hard money lender to finance the loan fast . Within one week, hard money loans may be financed in the majority of cases. Compare it to this 30. The application procedure to get a cash loan normally requires a day or 2 and sometimes, financing may be approved the exact identical day. Fantastic luck hearing from your lender in precisely exactly the week!

The capability to attain financing is a substantial benefit for a property agent. When the property agent is attempting to get a home a close having a hard money loan may find the focus of a seller and place their offer besides the remaining buyers supplying funding that is slow.

Another reason why that a borrower may decide to utilize a cash loan is they have been refused by the banks to get a loan. Life does not always go as intended. Short term sales, foreclosures, credit issues… they occur. Would be revenue history. The lender may deny that the loan request due to revenue history, even in the event the borrower creates a healthy income, if a borrower began a new endeavor. Hard money lenders have the ability to check beyond these problems as the loan has been repaid and the debtor has equity.

Borrower Requirements For Hard Money Loans

Hard money lenders are worried about the quantity of equity the debtor has invested as mentioned previously. They are worried about the debtor’s credit score. In the event the debtor has the funds to cover the interest Problems on a debtor’s record like a foreclosure or sale could be overlooked.

The money lender should think of the debtor’s strategy for your property. The debtor must present a plan which demonstrates how they mean to pay the loan back. Ordinarily, the house is currently enhancing and selling it or getting financing on.

Short-Term Loans

The Many Benefits of Getting Short-Term Loans

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Financial emergencies can arise at any point in time, and for people with families, it can be very difficult to make ends meet all of a sudden. Instead of asking others for money, one of the best things that you can do is apply for a short-term loan. There are a bunch of different loans that are offered by local companies, so it’s not like you have to go to a bank every other time. There are a number of benefits that you get for applying for a short-term loan, making it an incredibly viable option for you. Here are just some of the many benefits that you get for applying for a short-term loan.

You Can Pay Them Off Quickly

One of the main reasons why you should consider taking out a short-term loan is because you will be able to pay them off quickly. For instance, instead of taking out a loan and having to pay it off over the course of a year, you should consider taking out a loan from a local company like Mango Credit. You can get more information at, making it an excellent choice for people who are interested in taking out an affordable loan. They offer a variety of loan products, and have an array of suitable features which make them an excellent proposition. If you are not taking out a hefty amount of money in a loan product, you will have the option of paying it back easily within a month or two, making it much easier for you to remain debt free.

Easier to Apply

Another major advantage that you get for taking out a short-term loan is that it’s much easier to apply as well. You don’t need to worry about filling out a lengthy application and waiting it out for days before you can get a verdict. In fact, these applications are incredibly easy to fill out; you can just fill it out directly online. This makes it a much more viable choice for people who are looking to apply for money quickly. Moreover, you will usually get the answer about whether your application has been approved or not on the same day, making these loans an excellent choice for people in times of need.

Quick Approval

Your credit ratings also don’t play much of a role when it comes to getting the loan approved. Instead, you can easily get the application approved if you have a nominal rating. In some cases, even people with bad credit can get an approval without much of an issue. It’s a great choice for people who are interested in getting a quick injection of cash without having to go through several loops. You just need to fill out the application, provide the relevant documentation, and once your documentation is approved, the money will be credited in your bank account. It’s that simple, and you don’t need to worry about much at all.

Loan Broker

Top 5 Questions to Ask When Interviewing a Loan Broker

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Home loan is certainly the biggest investment you will make in your life, so it is vital to know precisely what is important when choosing a loan broker. As there are a large number of loan brokers available in the market that provides low doc home loans and also specializing in the difficult areas of loans for self-employed and small to medium business people, you should look for a loan provider with a considerable experience, excellent achievement record, solid reputation and government approved license.

In order to make sure that the broker is good and professional, you should conduct an interview and listed below are five questions you must ask.

  • Which Home Loan Is The Best? – A professional broker will never give you a straight and simple answer on this. They will explain the current trends and ask you more about your current financial situation and future plans in order to suggest a particular type of loan.
  • How to Prepare For Borrowing? – The good broker is a professional advisor as well. He should ask you about your income, savings, and future plans to recommend a strategy. The more questions the broker asks the better it is.
  • Chances Of Getting Loan Approved? – If you have a bad credit history, you should ask directly how the broker will help you in this. It is best if the broker has solid contacts in the industry and works with specialized lenders as well.
  • Fees For The Service – It is ideal if the broker can ensure that the fees which you initially agree on will remain the same at closing.
  • Explains The Process – The broker should not use tuff language which may be confusing for you. They ought to clarify everything in a simple manner and ensure that you understand everything. An expert will explain how you will communicate as well.
interest rate matters in your loan

Why the interest rate matters in your loan

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The interest being charged on your home loan determines how expensive or affordable the loan product becomes. Choosing the right loan saves a lot of money in the long run.

If you are looking for your dream home, you may also be looking for a good home loan to fund the house’s purchase. The high costs of real estate in India make it impossible for most people to buy a house without borrowing a home loan. However, taking a home loan is the easy part – there are many options in loan products and several prominent housing finance companies who offer the best in class loan products with minimum hassle.

If this is your first house purchase, you might be a little daunted at the huge sums of money involved in the loan. The housing finance company provides up to 80% of the house’s cost by way of the home loan – lending institutions like PNBHFL may provide up to 90% of the house’s price for loans up to Rs 20 lakh – and the remainder must be paid from your own reserves.

The best time to take a home loan is NOW

Meanwhile, it is important to know the rate of interest being charged by the lending institution. The interest has a direct bearing on how expensive or affordable the loan becomes. In terms of interest rates, now is the perfect time to invest in a property of your choice. Whether a first home or a weekend house, home loans are more affordable with a drop in interest rates.

Post-demonetisation in November 2016, premier banks and financial institutions in India cut the lending rates on home loans – this was a response to a sudden influx of funds in their coffers. The first wave of rate cuts dropped home loan interest from the range of 9.6% to about 8.6%. Current home loan rates are hovering in between 8.5% to 9% across banks and housing finance companies.

While SBI Bank offers the lowest rate at 8.5%, reputed housing finance companies like PNBHFL offer interest rate from 8.9% onward. However, PNBHFL’s Ghar Utsav scheme offers 8.5% interest rate for 12 months after taking the loan, and the interest rate is adjusted later in accordance with the rates being offered at that time.

Current home loan rates being at their lowest point in several years spells good news for potential home buyers. The lower the interest rate, the more affordable the home loan becomes, and the lower is the amount of money the buyer repays to the lending institution. It translates into a lower EMI, thus making more of your monthly income available for other expenses in the house.

Normally, the EMI must not exceed 50% of the monthly income. An EMI amount higher than this can strain your monthly budgets. Thus, it is important to shop around for loans with lower interest rates, to save on repayments.

Loan Broker

Loan Broker: 7 Reasons Why You Should Use One

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Applying for a home loan or budgeting loan online is not the most enjoyable experiences. Calculating a budget and a complicated structure of interest rate can all cause a lot of stress. This is probably the reason why loan or mortgage broker come into place.

What Do Brokers Do?

A mortgage/loan broker doesn’t lend you money physically; his/her role is to help borrowers in finding a correct money lender based on their requisites. Most brokers don’t charge fees for budgeting loans, the lender pays a commission, and this does not affect the type of loan or the interest rate you receive.

7 Reasons Why Using a Broker May Be the Smartest Move

  • Save Your Time – The choices available in the loan market can seem limitless. You can examine the subject and the money lenders, or take help of a broker, who already has that knowledge.
  • Save Money – Choose a broker that offers a free service, comparing thousands of dissimilar loans from different lenders, making it lost more easily to come across if there is a superior home loan for you.
  • Give You Choice – A specialist broker has a healthy panel of lenders over 500 different loan types from which to choose.
  • Find the Right Loan – The best arrangement is not really the least expensive rate. A professional broker will look at your future plans and current circumstances; this enables them to suggest a loan that is right for you.
  • Help You Avoid Pitfalls – Your broker can help you avoid taking a loan you might later regret.
  • They Come To You – Brokers will come to you; appointments are scheduled in the comfort of your office or home, at a time that suits you.
  • Do All The Work – Your broker will prepare an application for you, submit your application and work with the lender throughout the process up to settlement.
Personal Loans

Options for Various Personal Loans for the Borrowers

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Personal loan can be a great support for many people when they are in need of some cash for some personal reason. The reason can be anything. From paying the medical bills to credit card bills or going for a holiday or buying some home décor items, people take personal loans for many reasons. There are different options for short term loans. These types of loans are good, because you do not need to follow any restriction about how you are going to use the money. Though the interest rates are higher than bank loans, it can solve many financial requirements at crunch time.

Choosing the right personal loan lender is a very vital task for any borrower. If you are not able to get the loan from a right lender, you may find yourself in some additional financial hazards. In this article we are going to discuss some of the ways of getting the right lender for your personal loan.

Getting Loans from Banks

Local banks are the best places where you can go for personal loans. And if you are already a customer of that bank, you can expect some added facilities while applying for the loan. A good banking history will secure your position as a premium customer of the bank and in such condition the bank will be pleased to provide you the loan. On the other hand, you know the bank very well so you do not need to worry about the lender’s market reputation while applying for the loan.

The point of concern with bank loan is the tiring process of credit check. You need to have good credit score to secure a good amount of personal loan from bank. Moreover, if you have low credit score you have to pay high rate of interest for the loan. In most of the cases, banks turn down loan application with low credit score. Thus, you have to look for other possible options for personal loans.

Online Bad Credit Loans

Internet can be a great source of opting for the right lender of personal loan. There are lots of financial organizations that offer their service online. You can do a search on internet to find out the top most names of such lenders. But since it is online, there can be scammers as well along with some genuine and professional lenders. So you need to be a little more careful about choosing the right online lender while option for the best personal loan lender. You should check at least 4 or 5 online lenders before you finalize the deal with one. Check their market reputation, experience in this field, their interest rate and other important rules.

The most popular online personal loan option is payday loan. Opting payday loans now is always beneficial, though high rate of interest is a concern. With such loans, you do not have to undergo the hassling process of credit checking. This is the reason why payday loan comes under bad credit loan category. You can still secure a handsome loan amount, even having bad credit score.

home loan

5 things to consider when applying for a home loan

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About to take a home loan? Read this information before you proceed.

If you are about to apply for a housing loan, it is natural that you are filled with dread and excitement in equal measure. On the one hand, you are on your way to buying your first home. But on the other, you are worried about the housing loan and the many sub-parts in it that you are not familiar with!

Applying for a home loan is easy if you know the operative parts of the process. We compile a list of 5 factors to consider when applying for a home loan:

1 Your eligibility matters – a lot. Your loan eligibility is the amount of money you can get when you apply for a home loan. Knowing the loan eligibility helps in determining the kind of house you should look for. It is computed basis your age, number of working years left, annual income, credit history, etc. The lending agency does not consider Medical Allowance and LTA in its final calculation. Thus, your projected income is automatically reduced.

2 Clear up your credit history. Your credit history comprises any present liabilities you have (personal/car/credit card loan), any other housing loan, or even any defaults on past loans. The higher your credit score, the higher is the chance of the loan application being approved. If you are applying for a home loan, it might be a good idea to clear up any unpaid debts first. Repay all loans if you can, or leave only a small amount to be repaid before you apply for the housing loan. A poor credit history might result in the application being rejected or a higher interest rate being charged.

3 A pre-approved loan saves time. You might be in the middle of house hunting, but certain of finalising a property in about six months. Instead of waiting to apply for a loan after finding a house, you might apply for a pre-approved loan. The loan application and approval can happen concurrently while you keep looking for suitable homes. The advantage of taking a pre-approved loan is that the evaluation process is over in a month’s time, and the loan is ready and waiting for you before you give the housing agency the go-ahead to disburse the funds. This way, you save a lot of time and can make the purchase in just a few days after selecting the property, instead of applying for a home loan at that point and then waiting for the approval to come through.

4 Check the interest rates being offered. The interest being charged on the loan determines whether it is an affordable loan or not. The lower the interest rate, the lower is the EMI and the lower the money repaid to the housing finance company. Do your research about the average home loan rates being offered under both fixed and floating interest categories. Once you find the right loan product, you can also inquire about processing fees, legal evaluation fees, etc.

5 The property documents are all-important. The housing finance company goes through the house sale agreement thoroughly. Any problematic clauses or missing chain of agreements (showing ownership from first owner to the current one) are swiftly flagged and pointed out to you. The lender will give you time to correct these lacunae, but it does put a question mark on the application. It is prudent to show the sale agreement to a lawyer and have any lacunae corrected before making the loan application.

Florida FHA VA Loans

Florida FHA / VA Loans

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IF you are looking for Florida FHA/VA Loans then there are certain things which you should be aware of. First of all, people only need loans when they have certain situations like they cannot afford for something they want or need at the exact moment, or if they want to save themselves from paying the high taxes to the government. So Mortgages are something which lets you get the loan from certain money lending organizations like banks or other money lenders. And here we are talking about the loans for the home buyers. So basically Federal Housing Administration or Veteran Affairs provides us with the facility of getting the loans on very Mortgages or payment amount. And this amount is being fixed according to the income of the borrower, which is the best thing you can have while living in the Florida. So now home buyers can set themselves in a relief due to this new type of loan rule that has been passed by the government.

Low Payments Options

And due to this low payment options now you can have even a bigger house in affordable down payment methods. Plus there is another edge available to these type of loan, as they have been approved by the state government. And there are certain credit scores that have been set to provide you with the specific percentage of down payments. Like for the credit score of 580, you will get 3.5% and for the 550 you will enjoy your house with the down payment of 10%, which is really an affordable payment. Now for all of this process, of course, you would require someone to guide you throughout with this process. Even though you have researched enough about these payments and mortgages. Till there is always some risk, as even a minor mistake could get you in some trouble. Money lending companies and organizations know very well about the frauds, and they are always on alert for such people. SO even a tiny mistake could get you in many problems.

Get Consulted

And the only solution for this problem is Lord Mortgages and Loans. Obviously, there are several other companies as well right now which is operating in the Florida. But of course, you need someone to whom you can trust with this process. And that could be surely done by the professional team of Lord Mortgages and Loans. And here you would get completely guided with this whole process. SO just to get the loan for your home there are many different types of loans, and all of them are set according to your affordability and comfort. So next comes the commercial Mortgages loan, and in these loans, same criteria are being used for the businessmen to start their company in this town, or if they want to expand their company here.

Dreams will Come True

And then Lord Mortgages and Loans provides them with all sorts of financial services with the help of which they can get the loans in just some days instead of weeks. As we all know that commercial loans always take some time to process, because of all the verification process. But if you would get consulted with Lords Mortgages and Loans then no doubt this process will be much quicker. So now your dreams will come true, and you can have your dream house with an affordability.

Car Title Loans

How to Take Care of your Finances while Taking Car Title Loans

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Now that you have decided to opt for a car title loan, it is important to consider the impacts that they may leave on your finances. Along with sky-bound interest rates, you may find yourself grappling with short repayment periods. These factors of consideration are capable of wreaking havoc on borrowers like you and need to be dealt with seriously.

Auto title loans: Will they hurt your long-term finance planning?

As per financial experts, auto title loans are known to impact one’s long-term financial budget and planning in adverse ways. Given this, it is very important to be aware of the underlying facts related to availing new credit. It is recommended that you do not become vulnerable tobad credit, loan sharks, unforeseen financial hurdles and other debt related issues in any way.

In case you are dependent on a fixed income and have regular EMIs and several bills to take care of on a monthly basis, you may find it tempting to borrow yet another amount from an auto title loan company. The entire process of availing the car loan is quick, convenient and reliable, thereby making more and more companies agreeable to putting fast cash into your hands with the least amount of processing. The act of giving such loans seems to be practically easy and free from any drama, at least in the initial stages.

However, a car title loan may prove to be an absolutely wrong means of getting access to short-term financial solutions; this is specifically true for people with small, fixed incomes to bank upon. Any loan, be it for a car, house or just about any other consumer product, is to be taken only if one has the potential to repay the same in full and in good time. It is common for car title loan lenders to overlook the debt repayment capacity of borrowers, thereby putting them in a compromising situation in future. This process of luring borrowers is referred to as loan sharking; it amounts to tricking people into unavoidable debt cycles from which there is no way out. In most cases, lenders just want their clients to keep on paying higher amounts of interests.

This is where reputed car title loan providing companies like

Come into the picture. They operate responsibly and have smart means of keeping the records of their borrowers. Along with catering to the car loan needs of elderly and middle-aged customers who have a steady income flow, they also extend the required amounts to corporates, young entrepreneurs and employees after conducting necessary due diligence for their debt repayment capacity. As per a AARP national survey conducted in the year 2008, over 20% of elderly Americans are opting for second hand car title loans. These customers are catered to perfection by reliable car title loan companies and find lesser levels of discomfort in repaying their loans.

All in all, there is certainly a lot that goes into the taking up of car title loans for short term purposes; do act accordingly to find yourself in a favorable position with your long-term finances.