What to look at when taking Private mortgage
August 13, 2020 | Posted by: Alex Vinarski
What to consider when looking for private mortgage.
When looking for a private mortgage clients should not only look at the rate and the fee for the mortgage.
Very important also renewal fee. Some lenders charge $200-$300 renewal fee, and some up to 1.5% of the mortgage amount, also some lenders will increase rate after 1st year. Another point to look at is is mortgage open or closed. Many lenders charge 3 month interest for early pay out, and some have open mortgage, so no penalty to pay it off early. There also legal fees for lender's lawyers. Most of the lender's use only 1 or 2 lawyers to represent lender, and fee could be up to $2000 different for different companies.