So what is a Lien?

A lien gives a bank or lender the right to sell the dictated collateral property if a borrower does not meet the terms of a loan. A lien is released when the loan is paid off. For instance, an individual takes out a mortgage on a house and the bank gets lien until which the homeowner pays off the debt. …

What to Say When Someone Asks You to Cosign their Mortgage?

Agreeing to co-sign someone’s mortgage is not a light decision. Holding the responsibility of cosigning a mortgage is no small feat– you are placing a commitment to some else’s financial obligation. However, in this day and age, the act of cosigning a mortgage can be seen as becoming old and outdated. Traditionally used to allow hopeful homeowners to obtain larger …

How to have a Successful Fix and Flip

  Partnering with Refresh Funding, in August 2015, a homeowner bought a Homestead property for $86,100. It took 150 days, with only $1,525 in closing costs for a total acquisition cost of $87,625 and investing $17,094 in rehabilitation cost. The investor paid 12% to borrow for 150 days for a total debt service cost of $114,737. With Refresh Funding supplying a …

West Palm Beach- Hard Money Loan

In March 2016, Refresh funded a $900000 hard money loan for a commercial property fix & flip project in West Palm Beach. The purchase price was $2300000. The Borrower plans to complete the rehab and flip back onto the market for $2400000, so the loan-to-value is 39%. The loan term is 1 year. The loan was made to a seasoned …

Rehab Loan in West Palm Beach

In April of 2015, Refresh funded a $120000 hard money loan for a multi-family unit fix & flip project in West Palm Beach. The purchase price was $200000. The Borrower plans to complete the rehab and flip back onto the market for $260000, so the loan-to-value is 60%. The loan term is 1 year. The loan was made to a …

Loan-to-Value (LTVs) what does it mean?

The loan-to-value ratio (LTV ratio) is a value that reveals the mortgage amount in comparison to the actual value of the property. It gives an assessment of lending risk for lenders or banks to examine in approving a mortgage. What does this mean? Usually the higher the LTV the higher the risk is to the lender; as a result, it …

Successful Miami Hard-Money Loan

In December of 2015, Refresh funded a $225000 hard money private equity loan for a single family residence fix & flip project in Miami. The purchase price was $600000. The Borrower plans to complete the rehab and flip back onto the market for $670000, so the loan-to-value is 36%. The loan term is 1 year. The loan was made to …

Succesful Hard-Money Loan in Fort Lauderdale

In March of 2016, Refresh funded a $950000 hard money loan for a single family residence refinance project in Fort Lauderdale. The purchase price was $2120000. The Borrower plans to complete the rehab and flip back onto the market for $2500000, so the loan-to-value is 43%. The loan term is 1 year. The loan was made to a seasoned investor, …

Rehab Loan in Miami-Dade

In November of 2015, Refresh funded a $150,000 hard money loan for a single family residence fix & flip project in Miami. The purchase price was $138000. The Borrower plans to complete the rehab and flip back onto the market for $180000, so the loan-to-value is 83%. The loan term is 1 year. The loan was made to a seasoned …

What is a Pre-payment Penalty? Should you Have to Pay It?

  A pre-payment penalty is a fee that establishes the terms in which a mortgage lender or a bank has with the borrower that puts re strictions on the amount and time that the borrower can pay off that loan. It is originally used by lenders to ensure a certain amount of interest payments per month, for example, taking 80% …