I've been a Mortgage broker for 12 years, and last 5 years I specialize in Private mortgages.
PRIVATE MORTGAGES from 6.5% in first position, and from 8.5% in second position. We can fund very fast, don't need income verification, and we don't charge upfront fee.
With private mortgage clients should not only look at the rate and the fee for the mortgage.
Very important is also renewal fee. Some lenders charge $200 renewal fee, and some up to 1.5% of the mortgage amount. Some lenders also will increase rate by 2%-4% after 1st year, but most of the lenders keep the same rate. Mortgage can open or closed. Many lenders charge 3 month interest for early pay out, and some have open mortgage, so no penalty to pay it off early.
For some clients private Line of Credit would be better option, then regular mortgage. Even fees and rates are usually higher for Line of Credit, but there are no renewal fees, and money can go in and out any time. Client would pay interest on advanced funds only.
There also legal fees for lender's lawyers needs to be considered. Most of the lenders will use only 1 or 2 lawyers to represent them, and fee could be from $950 to $3500.
HOME EQUITY LINE OF CREDIT (HELOC).
HELOC can be register as first or second mortgage, and based purely on the equity in your home. No income verification required. No pay stub, or tax return, no upfront fee. Only need mortgage application, and appraisal ordered by the lender. Appraisal paid by the borrower, upon receiving mortgage commitment.
Rates from 7.95% in first position, and from 9.9% in second, up to 75% of the property value, up to $1m.
HOME EQUITY VISA is another good product. It's registered as a 1st or 2nd mortgage, and can be up to $250,000. Rate from 5.99%, and clients get 1% cash back on purchases. For this product lender wants to see business registration, and confirmation that business actually makes money (business bank statements showing deposits, paid invoices etc). Don't need to show tax return.
When you are not qualify with the bank because of the credit or income, you can get mortgage with B lenders. B lenders are also banks, with special programs for clients who have credit problems or income verification problems. Rates will be around 4.5%-5% for 1st mortgage.
Alex Vinaraski, Mortgage Specialist, Invis inc
do NOT contact me with unsolicited services or offers