Private Mortgage
Quick Summary
A mortgage funded outside traditional banks, often for short-term needs.
ELI5 Explanation
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It is a faster, more flexible loan that usually costs more.
Detailed Explanation
Private mortgages are typically asset-focused with higher rates and fees than prime lending. They are commonly used as bridge financing during credit or income transitions.
Example
A homeowner denied by a bank uses a 12-month private mortgage while completing renovations and debt cleanup.
Why It Matters
Useful for urgent cases, but must be paired with a clear exit.