Private Mortgage Refinancing
“Private Mortgage Refinancing Can Be Your Best Source Of Short Term
Mortgage Financing”
Private mortgage refinancing can be both the best choice as well as the only choice when it comes to a mortgage refinance situation.
In situations where you are in need of additional funds and you have distressed or strained credit, paying out your existing mortgage or mortgages with a new private mortgage can be the best choice available to you.
Because a private lender is going to be more concerned about equity versus credit score, there is a much higher likelihood that refinancing can be done through a private money provider compared to a bank or institutional lender. This becomes more relevant if you are under any type of time pressure as a private mortgage can be put into place in less than two weeks while you can spend months trying to find a better institutional solution when your credit is not in good standing.
But being in a bad credit scenario isn’t the only time to consider a private mortgage refinancing.
In most situations, a private mortgage is a short term, or bridge financing facility that will need to be repaid in a period of one year.
Therefore, if you have circumstances where a short amount of time will allow you to be able to secure longer term financing from a bank or institutional lender, a private mortgage refinancing option can provide the time required to improve credit, cash flow, or search for better options.
In the case of commercial property financing, a bank or commercial mortgage can take two to three months or longer to arrange at times.
If you have a short term mortgage refinancing need either because your current bank does not want to renew your existing mortgage, or you require additional funds for your business, a private mortgage refinancing of your existing mortgage can stabilize your balance sheet and cash flow quickly, and provide the time necessary to work through not only the options available to you in the market, but the time it takes to pursue them.
The key with private mortgage refinancing is that it has the potential to provide capital in the short term to help you avoid costs or take advantage of opportunities that exceed the incremental cost of private money.
Not being able to repay your existing mortgage on a timely basis, or provide additional funds for debt consolidation or other short term funding needs can be costly and far exceed the incremental cost of financing between bank financing and private financing.
At the same time, not all mortgage refinancing situations will be well suited to private mortgage refinancing options. But for those that are, a private mortgage can end up helping you make or save money in the short term.
If you would like to better understand private mortgage refinancing, I suggest that you give me a call so I can quickly review your situation and provide private mortgage refinancing options for your immediate consideration.
Click Here To Speak With Toronto Mortgage Broker Joe Walsh About Private Mortgage Refinancing
About the Author Joe Walsh
I'm a Toronto Mortgage Broker that arranges mortgage solutions on residential and commercial real estate property. With over 30 years of mortgage financing experience, I'm able to quickly assess your financing requirements and provide relevant solutions for your immediate consideration. Joe Walsh Google+ YouTube Channel