HOW SECURE IS A MORTGAGE INVESTMENT?
A mortgage investment is very secure, provided that one simple rule is followed: a suitable margin of equity exists and remains when a mortgage is created and money is loaned. For most transactions it handles, Leverage Financial retains the services of an independent real estate appraiser to determine the current market value of a property before the loan is approved and funds advanced. The appraisal is then scrutinized and in many cases discounted as to provide more security to the investor. In ALL circumstances, the maximum loan amount approved is 65% of the current market value (created from the appraisal and approved by Leverage Financial’s underwriting team). This policy insures that a minimum margin of 35% equity remains in the property after the loan funds have been advanced.
