Mortgage Tips, Tricks & Secrets

Asset Based Mortgage

What Is An [tag-tec]Asset Based Mortgage[/tag-tec]

An asset based mortgage is like an equity mortgage only it’s for people who have a lot of money in the bank.

You’ll find this used if you want a mortgage but you have terrible credit or don’t want anyone taking a look at your credit profile, however you have to have a lot of savings to pull this one off.

Typically, you would visit your banker and explain your situation and ask for an asset based mortgage.

If the banker agrees, you get a mortgage based mainly on your savings.

The interest rate is very low on [tag-ice]asset based mortgages[/tag-ice], and there may be no points at all to pay with this type of asset based finance.

The disadvantage is that if you’re trying to do fast asset based mortgages money available must not be tied up too heavily. This type of mortgage ties up your savings simply because the finance is asset based. It’s unlikely that the bank won’t allow you to make withdrawals from the savings in any significant amount until the mortgage is paid in full.

Your bank is the best bet for this type of loan since it’s not a mortgage broker or loan officer type of transaction.

Not all banks will get involved with the [tag-self]asset based mortgage[/tag-self] option however you can simply call other banks in your area with this request. If a bank is unwilling to do this type of loan, you can indicate you’ll make a substantial deposit into savings if they will grant the mortgage. Not many bankers will over look that type of offer.

In conclusion, asset based lending can help those borrowers who are credit poor but cash rich. Your local back can give you the details allowing you to save your cash and leverage your savings without spending it — allowing it to continue working for you over the long haul.