It can be quite appealing to get cold hard cash for your house and move on. You want to get a competitive price for your home, but you don’t want to put yourself in a bind with a hard money loan without knowing all the details. There are a few disadvantages to jumping into a hard money loan against your house instead of just getting cash for it.
What are the Disadvantages?
First of all, when you are getting money from your home, you want it with no fees, no commissions, and a low-interest rate. This, of course, means you don’t pay commissions because you didn’t go through a Realtor. If you sell your home for cash, you can see that instant income without crazy fees. A hard money loan against your house is going to come with a high-interest rate. These can get up to twelve percent or higher which will make it a lot harder to pay it back over time. The payback period may also not be that long making it stress you take on instead of a positive release.
Hard Money Loans versus Cash for your Home
If you’re looking into a loan against your property, then you may want to consider a company that offers you cash like USA Cash for Houses. Often times, people go looking for a hard money loan when the condition of the property isn’t good enough for a normal lender to lend money on it. Cash for houses company will pay for your home no matter the condition and help get you out of financial dire straits in the process. A quick house sale may be the answer to your financial programs, and with a cash program, you aren’t stuck paying mostly interest for the next few years.
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