What Makes Your Mortgage Note Valuable?
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How do we calculate the value of your mortgage note? We consider a large number of factors. Once you decide to sell your note and request an estimate that touches off a thorough investigation process that ensures that you get the best fait value. Beyond raw equity, we look at your note with the following factors in mind:
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Borrower Credit Rating: If you’ve made intelligent decisions managing your mortgage note you’ll have a borrower/payor with a decent to excellent credit rating. The better the credit rating, the more valuable the note.
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Market Value: Although you can avoid many of the pitfalls of bank loans through seller funding the wider real estate market does matter. Even though your loan follows the conditions you’ve set in the private note the broader market can help predict borrower behavior and a number of other critical, value-affecting factors.
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Payment History: Prompt borrower payments add value to your mortgage note by signaling its value as an investment. Irregular payments decrease our confidence in the note, even when those payments are being made by someone with a
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Seasoning: Seasoning – the number of payments made on the note – signals proper administration of the loan and a reliable borrower: two factors that add value to your mortgage note.
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