Private loan money is often called hard money. The loan usually comes from an expert in structuring these loans. A hard money residential loan is made up of a first mortgage on the residence. Private loan money can be identified by a variety of factors that are called a hard money loan.
A first mortgage will prevent the loss of the whole property if another loan is available. In case of hard money loans in Seattle, the lender doesn't care much about the borrower’s credit. This is because the lender views the property as security and is being paid dearly by the lender for taking the risk of relying only on the property's value.
Image Source: Google
Another aspect of a hard money lender is that they often charge high interest rates and high points. If the property is sufficiently secure, these high points may be added to the loan. This means that the borrower is effectively paying interest on the interest.
Since points are interest and the mortgage calculation may include the points, each payment made by the borrower, which is interest only, is in fact interest on the interest. Hard Money loans in Seattle are not a public company or individual.
They are either private companies or individuals who decide their own guidelines. Private money lenders can determine whether the deal is worth it. Private money loans are evaluated based on how well the transaction is. Private money loans are available to help you find great opportunities.