MORTGAGE LOAN
Hard Money Mortgage
A Hard Money Mortgage offers you financing based on a percentage of the value of the property. Rates may be fixed, variable, discounted or capped. Opting for a Hard Money mortgage means you don't have to have good credit because the loan is based on the property to protect the lender. You may also be charged an above-average interest rate and closing costs.
Capped Rate Mortgage
A capped rate mortgage has a maximum interest rate for a given term. The interest rate you pay cannot go higher than the agreed capped rate, thus you know the maximum amount your monthly repayments could rise to. However, if the basic interest rate falls below the capped rate, repayments will also reduce.
100% Mortgage
A 100% mortgage offers you a borrowing of 100% of the value of the property, i.e. no down payment is required. Rates may be fixed, variable, discounted or capped. Opting for a 100% mortgage means that you could risk facing a negative equity situation if house prices fall. You may also be charged an above-average interest rate and a mortgage indemnity premium.
Stated Income Mortgage
Stated income mortgages are available for independent contractors and the self-employed borrowers. The lender will ask for details of the borrower’s income but they will not require to see proof of total earnings. Other terms will depend upon the lender’s requirement at the time and in accord with the rates prevailing in the market place.
Variable rate Mortgage
A variable rate mortgage is one in which the amount you repay increases or decreases in line with any interest rate changes. This means that you cannot predict the monthly cost of the borrowing, which could cause financial concerns within the mortgage period.
Cashback Mortgage
A cashback mortgage provides a cash rebate on completion of the purchase. The sum is either a percentage of the advance or fixed. This cashback could help you to cover some of the expenses of setting up home but, this bonus is often subject to higher repayment rates and may include penalties for repaying the loan early.
