Refinancing your mortgage is not a sure bet even in today’s thriving economy. In fact, the average American still cannot get qualified for a mortgage.
One main reason for a traditional mortgage denial is insufficient credit scores. According to data, the median credit score for a new mortgage is over 750.
This is significantly higher than the average credit score for Americans aged 18-39 years old. Poor credit leads many Americans to pursue hard money loans instead. These loans are known for having much higher interest rates than a traditional loan.
Are you looking to get out from under hard money loans Georgia? Read on to learn if a refinance is possible and what you need to know.
What Is Hard Money?
Before determining whether a refinance is possible, it is important to understand exactly what hard money is. Home buyers pursue hard money because it is easier to secure than a traditional loan. The requirements are significantly less stringent on the applicant.
Hard money loans are offered by non-traditional lenders. The most important thing hard money lenders look for is equity in the home. The review team will consider the home’s approximate value and remaining debt.
The application review process is much shorter than a traditional refinance. Things like credit scores and appraisals are not included in the process. Also, the lender does not need certain documentation like old tax returns.
The end result is a decision on a hard money loan in just a few days. Loan terms are also shorter than a traditional loan. The loan term is likely to be up to 2 years and is designed as a short-term money bridge.
Can You Refinance a Hard Money Loan?
The answer is a resounding yes. Sometimes, home buyers use a hard money loan with a super high-interest rate to finance their home.
In this case, they may be looking for ways to lower the interest rate. Another reason that homeowners choose to refinance is to pull equity out of their house. Perhaps they need to settle credit card or other types of debt.
Regardless of the reason, you can certainly refinance a hard money loan. The application process is just as easy for a refinance as any other hard money loan.
There are no upfront refinancing fees. Also, you will save money by skipping the appraisal and other traditional requirements.
The best advantage of refinancing a hard money loan is the quick closing. If all things go according to plan, you should have the requested funding in a matter of days.
A Recap of Hard Money Loans Georgia Has to Offer
The average American has a credit score that cannot qualify for a traditional mortgage. This pushes them into hard money loans that may have a high-interest rate.
The good news is that you can refinance a hard money loan by finding the right lender. The process is short and easy with little formal requirements. If you are interested in refinancing hard money loans in Georgia, please contact us today to set up an appointment.