Private mortgage

From Wikinvestor

Private mortgage is a term used to refer to getting a loan with private money. Private Money is a commonly used term in banking and finance. It refers to lending money to a company or individual by a private individual or corporation. While banks are traditional sources of financing for real estate, and other purposes, private money is offered by individuals or organizations and may have non traditional qualifying guidelines.

Private money can be similar to the prevailing rate of interest or it can be very expensive. When there is a higher risk associated with a particular transaction it is common for a private money lender to charge a rate of interest above the going rate.

Finding private financing

There are many ways to find private financing, one is through private money lenders, or hard money lenders.