Collateral Mortgage

Sam · Posted: Tue Jun 01, 2004 3:40 am Post subject: Collateral Mortgage

Collateral Mortgage is one in which property, real or personal, is promised as a security for getting a loan.

Features of Collateral Mortgage:

The money which is borrowed, can be used to buy a property or for another purpose such as home renovation or for a vacation.
It is a kind of mortgage which secures a loan by way of a promissory note.

For Example, Jackson wanted to take a loan of $200,000 for his house renovation by collateral mortgage, so he has kept his house as collateral by signing a promissory note. Now his house is considered as collateral for the loan, and the house can be taken back from Jackson if the loan is not repaid.

Guest

my house in Pittsfield N.H. is paid off. The town values @ $270K. I am going to borrow $30K for a new roof and other misc. Would you like to place the loan? prefer no doc collateralized.

savior70 · Posted: Thu Oct 01, 2009 5:30 am Post subject:

Hi,

If your house is currently valued at $270k and is paid for, you can easily get a loan of $30k. However, your credit and income will have to be satisfactory to qualify for the loan. In case, you want to go for a no-doc loan, things will not be easy. After the sub-prime mortgage crisis, most lenders have stopped originating no-doc loans. Only a few lenders in certain areas still offer such loans. The interest rate on such loans would be high and you may have to come up with down payment as high as 30% to qualify for the loan.

gmakerley · Posted: Thu Oct 01, 2009 6:18 am Post subject:

marion, as savior pointed out, no-doc loans are sparse at best. clearly you won't have to worry about down payment in your case, but i think you'll be much more likely to be granted your loan with a fully-documented file. with a loan in the neighborhood of $30K, you'll more than likely want to search for a home equity loan, as traditional first mortgages will be quite expensive at that reduced amount, and many lenders won't even consider it.

with a local lender - a community type bank or credit union - i believe you'd find more liberal terms than with any of the national lenders, and your rate would more than likely be reasonably decent as well.

Guest

If I put an ad in the paper I feel that I may get a better response. Before I do this (ads are expensive) I want to ask one more time out there ....is there anyone willing to give a collateralized loan for $0K? I will pay 10%

Guest

my response had typo NOT ZERO K $30K!

Guest

my home is paid for...before I use the newspaper (I've had success there in the past)...I ask in a different way to the computer....Is there anyone out there willing to lend $30K on a paid for house valued @ $270K? I will pay 10%

gmakerley · Posted: Sun Oct 11, 2009 9:39 pm Post subject:

marion, a home equity loan is the way to go to get a loan for that sort of amount. plenty of lenders are out there doing equity loans or lines of credit for that amount, and even smaller. you don't need to pay 10%, but i doubt that a lender will pass up your rate offer, either.

All times are GMT - 7 Hours

Page 1 of 1