Forgotten Your Password?

Need to Register?

Question Icon

Are private lender mortgage rates different than the banks rates

by kreeta8653w463 from Holly, Colorado. Dec 15th 2014 Reply


Dave Metsker (DaveMetsker)
#37 ranked lender in Oregon - 2,317 contributions

Private lenders can be more flexible, but the rates will be higher, and the terms shorter, in most cases.

Dec 15th 2014
0
0
Russell Nelson (RNelson)
#86 ranked lender in Colorado - 5 contributions

Sure. The average rate for a private mortgage is over double the rate you find in retail lending.

Dec 15th 2014
0
0
Sean Young (SeanYoung)
#2 ranked lender in Colorado - 1,107 contributions

Yes, they are usually higher. You will have much more flexibility with a private lender and may be able to do a loan that a bank or lender would not. I would suggest to speak with a local loan officer to see what your options are. If you have any questions please call or email anytime. 303-521-7169 / syoung@firstcal.net

Dec 15th 2014
0
0
Bert Carpenter (BertCarpenter)
#38 ranked lender in Arizona - 1,815 contributions

Traditional lenders sell their mortgages into the secondary market, freeing up that money to make additional loans. For this reason, the market demands that the loans that are sold conform to certain characteristics that help ensure the loans are likely to pay. Most private or hard money lenders are lending their own money and don't sell the loan. This allows them to be more flexible in the criteria of the borrowers, but that comes at a cost, usually in the rate and the fees. If your situation requires you to use a private lender, then expect to pay more. Don't forget to check out your selected Mortgage Originator at the National Mortgage Licensing System at www.NMLSConsumerAccess.org ~ Bert Carpenter, The LoansA2z team of NOVA Home Loans ~ NMLS 40586 ~ Licensed in Arizona (AZLO0911876 / AZBK0902429), Washington (WALO40586 / WACL3087) and California (CADOC40586 / CAFLL6036566). We are licensed by the CA-DBO under the CFLL and CRMLA. Loans made or arranged pursuant to CFLL or CRMLA license. ~ www.LoansA2z.com ~ 888-889-9950

Dec 15th 2014
0
0
Jason Vondrak (jvondrak)
#3 ranked lender in California - 1,715 contributions

Yes, they generally have higher rates than retail banks. However, private lenders can be more flexible in terms of qualifying.

Dec 16th 2014
0
0
Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,225 contributions

All the answers assume you are comparing truly private financing, not a private mortgage company vs. a retail/bank type lender where the rates will generally be pretty similar depending on who you talk to.

Dec 16th 2014
0
0
Subscribe to our news feed.