If you require some money and own your home you may be able to use a private lender to finance your requirements. A home equity loan in Trenton is fairly simple to understand, your home has a present market value and you may owe some money on your home by way of a mortgage. Here are two examples of private loans in Trenton:
Market Value of Home $300,000.00
Less 1st Mortgage $100,000.00
Total Equity $200,000.00
Market Value of Home $200,000.00
Less 1st Mortgage $ 0.00
Total Equity $200,000.00
In both of the above example the total equity in each home is $200,000.00. Private lenders in Trenton will lend up to a certain percentage of the equity in your home, each lender has different criteria for the loan.
In most cases lenders in Trenton will not excede a total loan to value ratio of 85%, since this is the maximum level of risk for a lender, the borrower will be charged a high rate of interest. We recommend not to excede a loan to value ratio of 75% since this a reasonable amount of risk for a lender and will therefore give the borrower a lower rate of interest.
Borrowers in Trenton should also keep in mind how long they will require the money for. If you just need the money for six months then you should not lock into a 5 year closed mortgage. As mortgage brokers we usually advise our clients to take a open mortgage which allows them to pay off the mortgage early if they want to. Please note that most open mortgages do have a 3 month penalty for early repayment.
Private mortgages in Trenton can be used for many different purposes:
Home renovations – get all the upgrades you always wanted and increase the value of your home.
Invest in other properties – use the present equity in your home to make you more money.
Personal requirements – pay for family weddings or education bills for your children.
Reduce credit card debt – this is one of the best uses for a private mortgage, you can convert high interest debt into low interest debt and save hundreds of dollars per month.
Follow this link for the 2011 Trenton census.
Our mortgage agents can help you get a home equity loan or mortgage that fits your requirements. We have access to many different types of lenders in Trenton including institutional and private lenders. All of these lenders will compete for your business and therefore offer you the most competitive interest available . Call now for information on a private lenders in Trenton.