B-Lending Mortgage s are coming back into fashion with mortgage lenders. What is B-Lending you may ask? Well B-Lenders are banks or other financial institutions that offer mortgage products outside the standard guidelines of TDS GDS ratios & credit qualifications. They permit stated income products that A-Lenders have for the most part backed out of & will accept low credit scores at great 1st mortgage rates.
With B-Lending Mortgages you can expect rates to be slightly higher than the banks best rate mortgage products, but still they allow home owners to refinance their home up to 80% & 85% with a combination 1st 2nd mortgage split. This is truly giving BC home owners the power to access the equity they have built up in their home.
You might say: “why would I want to pay a higher rate on my mortgage when I currently have a better rate. “ Well that is true in most situations, why would you want to pay more for borrowed money. But if you have consumer debt dragging down your credit rating this is a great opportunity to help improve your credit score by improving your cash flow.
How can cash flow improve your credit score? If you have credit cards or other bank loans averaging between say, 8% to 19% your amortization on these loans are usually 4 or 5 years. This sorter amortization increases the monthly payments you make & in turn effecting cash flow. By combining all these debts into one loan secured by your home you will obtain a lower overall payment increasing cash flow and improving your credit score.
B-Lending mortgage loans usually come with a 1 or 2 year term. The idea is you use this type of financing as interim financing. You straighten out your credit or income situation during the term of this mortgage and at the renewal you switch the mortgage back to a bank for the best mortgage rates.
For more details or to have your situation looked at call me today and I would be happy to look at your situation and give you a personal review to see what works best for you. 1-877-744-3436