There are a lot of times where people need to get things taken care of with their finances. Sometimes, they will go for their mortgage to see if there is a way to make sense of everything and get what you need for an affordable cost. If you are looking for private mortgage lenders toronto, here are the two main options that you are going to look at when it comes time to go ahead and try to use your mortgage as part of the way that you get everything done.
Mortgage Refinancing. Mortgage refinancing is when you take your current mortgage, get it “paid off” by the refinancing company, and then pay on the new loan. The reason that this is considered a hard money loan is because you are using your home as collateral for the new loan, instead of looking at your credit score. On top of that, your loan ends up costing you more in the long run because of all of the costs that are associated with obtaining the loan. Because of this, the life of your loan will also be extended somewhat.
Equity Loans. Equity loans are another very common type of hard money loan. They are probably the type that you will see the most, to be honest. Equity loans are usually taken out on the value of the home, even though there are some loan companies out there that allow you to borrow money and use your car as collateral instead. Either way, you have a certain amount of money that you can take out against your home’s value, and then, as a result, you have to pay it back. You usually can’t get an equity loan unless your home is paid off.