Private Mortgage vs Traditional Mortgage?

[bobbyreyes]

Private mortgage is one of the best solutions for home owner who are looking for other financing solution. In this you do not have to stuck in a long mortgage approval process. There are so many private lenders, who can help you and provide mortgage at easy interest rate. Read this article and know, why private mortgage is right for you?

[MortgageQueen]

I have to completely disagree on this one. I specialize in providing private mortgages and they are only good when there's absolutely nothing else available. . .and even than it has to make sense. Private mortgages are NOT cheap.
One should try all other options before a private mortgage. That said, usually taking a private mortgage is better than losing your house or perhaps it's cheaper than paying all the 18% ++ interest rates on maxed credit cards BUT. . . better to try and resolve issues in other ways if you can.

One should also realize private mortgages are really only meant for short term, so you should be planning an "exit strategy" (or pay back) right from the get go. Usually that is refinancing your 1st mortgage together with your 2nd as soon as possible. This might require some credit counselling or budget counselling to bring one's credit score up to a level where one can get traditional financing again.

[dougboswell]

Obviously you are promoting your company but the title should have been "Why private mortgages are bad for you". Most private loans are meant to be equity takeouts for a short period of time and the LTV is capped. They are not meant to be used for buying a house. Easy interest rates is a bit of a misnomer. You left out the part about how the lender may charge an upfront acceptance fee and certainly the mortgage agent putting the deal together will be adding on a brokerage fee.

[bobbyreyes]

I respect your views and agree with it, But private mortgage can help lots of people who are unable to go for a traditional mortgage because of any reason. It can be a solution for them as it is easy to qualify, a great option for er and having a short approval process.

I dont mean that every one should go for it, but just want to emphasis, how it can provide benefits to people who are stuck into mortgage process.

[MortgageQueen]

There are times when a private mortgage is appropriate, but if you are acting on behalf of or promoting private mortgages in any way than it is only ethical that you give people Full disclosure on the seriousness of alternative mortgages. Advertising private mortgages as Fast and easy is definitely falling on the side of unethical and unsavoury.
Helping people qualify for mortgage financing does not always mean getting them the funding this instant. Sometimes they just need a little professional advice on how to clean up their credit and save enough for 5% down. Often times, that can be accomplished fairly quickly. I think of this as a bit of a "pro bono" part of the brokering business and it can make a big impact on people's lives to just get a helping hand.

[jul644]

thanks for the inside input