Hard money and Private money loans are more expensive. Our rates and fees are NOT competitive with banks, government, or other conventional lenders. If you qualify for a loan from one of these sources, we recommend staying away from hard money and private money loans. The only exception is if you need money quickly.
One way we can keep charges to a minimum is by offering 2nd and 3rd mortgages. The advantages are two fold: 1) if you have a low interest 1st mortgage, you can keep it and only pay higher interest on the cash out portion of your equity, 2) Closing costs are reduced because the loan amount is much smaller. It is less expensive to pay 10 points on a $50,000 2nd mortgage ($5,000), rather than 5 points on a $500,000 1st mortgage ($25,000).