Hard money loans are a way to borrow money using real estate as collateral without going through the traditional lending channels. There is a wide range of hard money loan products available, but they all share the same adaptable conditions, fast money transfer, and high approval rates. Below are examples of hard money loans provided by Florida commercial real estate lenders.
Refinancing Your Mortgage
Your home serves as collateral for a loan used to refinance your mortgage. The previous debts are repaid, but as a result, a new loan is made. The new loan will likely have a higher interest rate and principal balance. If you are a homeowner in need of refinancing, you can add the new hard money loan’s fees to the principal amount. In addition, the borrower may elect to pay the preceding mortgage’s costs out of pocket.
Refinancing with Cash Out
You could be able to get a cash-out refinancing loan if you take out a new loan that is larger than the sum of an existing debt that you want to pay off. The additional funds from a cash-out refinancing loan are referred to as cash for the borrower. Typically, the revenues from a refinance consist of these funds. If you own a home, you can use this money to make changes that will raise its value. However, this sort of loan is not utilized by borrowers who wish to repay their high-interest debts in a timely manner.
Equity Loans and Bridge Loans
An equity loan is a kind of quick-funding loan offered by a Florida commercial real estate lender. However, the first mortgage will take precedence over this loan. Alternatively, a homeowner will use a bridge loan if they want to buy a new home before they sell their old one. These kinds of hard money loans are often used in seller’s markets rather than buyer’s markets.
Monroe Funding Corp has a wealth of experience and knowledge to help you reach your investing goals. To learn more about Florida Commercial Real Estate Loans, contact us online or by phone at +1 (954) 419-3539.