When homeowners or business owners need a first or second mortgage on their property, but don’t have enough credit to be approved by a bank, or have already obtained a loan from a lender who won’t give them additional funds, they often turn to private lenders. Private lenders are individuals or companies, that don’t necessarily need to be a financial institution that can provide borrowers with the loan they need in the way of a private mortgage. While the benefits of private mortgages to the borrowers are obvious, with options opening to them that weren’t there before, investing in private mortgages can also be a great opportunity – especially when other forms of investing are impractical.

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Two key factors are taken into account by the lenders when considering an application for a mortgage loan – the borrower and the property. With regard to the Borrower, there are two key factors you need to be able to explain to your mortgage seeking clients…

Someone that I know was talking to me about the subject of reverse mortgages. This guy thought the concept of a reverse mortgage is, as he said it, “a great deal if you are retired and own your home”.

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In a move to bolster the Mutual Mortgage Insurance Fund (MMI), FHA has announced an increase to the annual mortgage insurance premium paid by borrowers with FHA-insured mortgages. While the Up-front Mortgage Insurance Premium will remain unchanged at 1.0%, the annual Mortgage Insurance Premium will increase from 1.0% to 1.25%. The increase will amount to a monthly payment increase of $20.84 for a $100,000 mortgage and an increase of $41.66 for a $200,000 mortgage.
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