Mortgages typically follow straightforward guidelines and the amount of principal that someone is responsible for paying back will include a monthly fee and an interest rate. Because some people have financial situations that may make it difficult or inconvenient to repay a mortgage back within the guidelines furnished, many banking institutions and private lenders are now offering custom loan programs.

A Custom Loan

The reasoning behind requesting a custom loan may include being faced with a future expense that is going to necessitate the shortening of a mortgage, having an earnings schedule that fluctuates and requires payments to be made on different days of the month, wishing to build equity faster, or wanting to refinance a loan, but not be burdened with an extension in which to pay back the funds.

A mortgage loan officer who processes applications for a custom loan program will explain what is offered through the financial institution that you are using for funding purposes. You may be eligible for one or more programs based on your circumstances.

The Borrowing Process

Custom loans will be less restrictive than standard ones. Based upon your earnings, your projected goals, your credit, and other financial obligations, a loan offer will be made. If you have an existing mortgage and are happy with the low-interest rate that you are being charged, but are compelled to refinance your loan, you may be wary about being saddled with additional repayment terms that will encompass the next two or three decades.

With a custom loan, you may be able to secure the low-interest rate and request a shorter time frame in which to pay back the principal and the interest. A shorter repayment term that is not saturated with high-interest rates may be something that you are ready to handle and this type of repayment plan can motivate you to save money that can go toward your mortgage.

If a big project or event is coming up and you are responsible for paying large fees, you may be worried about how you will make your mortgage payments on time and satisfy the additional expense. Explain your financial situation and concerns and a loan officer may offer a custom loan program that will require you to put more money down on a home or pay inflated monthly mortgage payments. These variables will help you pay your loan off within the project time frame that you have in mind. Contact a custom loan program service for more information.