If you know anything at all about hard money Mortgages, you know that their interest rates are high. This may have turned you off to them in the past, but don’t let it deter you from pursuing one if the time is right for you. However, you need to keep in mind that getting a Mortgage from hard money lenders in Arizona is entirely different than getting a Mortgage from a conventional lending institution. You simply will not see those low interest rates you are hoping for, and we are going to do a bit more exploring as to why. Hard money lenders in Arizona do want to lend to you, but you have to keep in mind that they are taking a significant risk in doing so because they do not base their decision on your credit or ability to pay. You can have embarrassingly terrible credit and still end up with a hard money Mortgage. However, you will never get a hard money Mortgage with a 3% interest rate. That is said without hesitation. Hard money Mortgages are mainly short term and contain higher interest rates. The typical Mortgage is anywhere from three to nine months—never the 30 year traditional mortgage.
Don’t Get Discouraged by Hard Money Lenders in Arizona
The entire Mortgage process can be an exhausting and frustrating one. However, if you see it through until the end, the results are usually very rewarding. Don’t let the higher interest rates deter you from pursuing a Mortgage, but do keep in mind that you don’t pay all that much in interest because the length of the Mortgage is so incredibly short. While I am not suggesting that a hard money Mortgage is any better or worse than a traditional Mortgage, you will not be spending tens of thousands of dollars on interest with hard money. Comparing the two types of Mortgages is like comparing apples and oranges—just plain different. For the most part, hard money lenders in Arizona will likely not be offering you single digit interest rates. That can be a harsh reality to face, but it’s good to know.