What is a common feature of private mortgages?

Private mortgages are commonly characterized by being created between individuals without the formal involvement of a financial institution, such as a bank. This type of arrangement allows private parties to establish loan terms directly with each other, often resulting in more personalized agreements compared to traditional mortgages issued through banks or lending institutions.

One significant aspect of private mortgages is the flexibility in negotiating terms, such as interest rates and repayment schedules, which are typically more adaptable than standard loans governed by formal lending guidelines. By facilitating direct interactions between lenders and borrowers, private mortgages can offer alternative financing options for those who might not qualify for conventional loans due to credit issues or other factors.

It is essential to recognize that private mortgages are not limited to conventional financing structures, which makes this arrangement valuable for those seeking alternative sources of funding.