A Brief Commercial Mortgage Guide
Commercial mortgage loans are used when purchasing structures such as office buildings, apartment complexes, health care facilities and retail outlets. Whether it's a hi-rise tower or a family-owned restaurant, buyers typically need additional funding to complete the transaction.
Commercial mortgages are what they pursue.Similar in many ways to residential loans, commercial mortgages require far more paperwork.
Both types of loan require that the properties being purchased undergo a thorough appraisal.
Both require collateral to secure the loan and protect the lender against default.
Like residential mortgages, commercial mortgages can be refinanced to take advantage of more favorable terms, or they can be re-mortgaged to establish a line of credit to use for running the business.
And like residential mortgages, the lender will hold the deed to the property until such time that the loan is repaid in full.
During that time, the lender makes money off the interest on the loan.
If the borrower fails to make payments on the commercial loan, the lender has the right to initiate foreclosure proceedings and take the property.
Remember, the property likely is what will be used as collateral.
The interest paid on the commercial mortgage usually is tax deductible; just be sure to consult with a professional first.When you apply for a commercial mortgage, you will typically be offered two different types of loans: fixed rate loans and variable rate loans.
These work the same as they do for residential mortgages.
On a fixed rate commercial mortgage, the interest rate that is negotiated and agreed to remains in effect until the loan is fully amortized.
If you're obtaining a commercial mortgage and interest rates are heading higher, a fixed rate likely is a better option.
You can always refinance your mortgage should interest rates go lower than your fixed rate.With a variable rate commercial mortgage, the interest rate will fluctuate during the payback period.
Interest rates are determined by the US Federal government.
Make sure you understand how variable rates are determined.
Also, find out from the lender how often the rate on a variable rate mortgage will change.
It's fine as long as the interest rate is decreasing; it's the increases that you need to worry about.
Make sure, too, that should the interest rates increase, you can still afford the monthly payments.
With some variable rate loans, the rate is fixed for the first few years, and then converts to a variable rate loan.When applying for a commercial mortgage, also ask about the Early Redemption Charge (ERC).
Remember, lenders make money off the interest on the loan.
When the loan is repaid in full sooner than anticipated, the lender loses money.
To avoid losing money, lenders often include an ERC which can amount to a substantial, one-time sum.
If you discover an ERC in the fine print, try to negotiate it away.
If you're not successful, take your business elsewhere. Applying for a commercial mortgage means that you're about to make a serious investment.
Be sure you know exactly what you're signing before you sign the documents.
You have a right to ask questions, renegotiate more favorable terms and do whatever else you feel is necessary.
It's your money and your future.
Good luck!.
Darren YatesCommercial Lifeline are Commercial Mortgage and Bridging Finance specialists.Download our free Commercial Mortgage guides by visiting our Commercial Mortgage Guide page.This article comes with reprint rights. Feel free to reprint and distribute as you like. All that we ask is that you do not make any changes, that this resource text is include, and that the link above is intact.articlesubs@gmail.comNew Website Gets People Bad Credit Loans
Raleigh, NC (ContentDesk) December 30, 2005 -- A new site on the World Wide Web enables people with bad credit - and all other credit grades - to apply for credit using the Internet. The website, found at http://www.dgftaworld.net/amex/credit.html on the World Wide Web, provides listings and links to resources that can help consumers find credit.The site, described as "impressive" by Mike Suilor provides resources not only to information about traditional credit cards and loans, but directs credit seekers to numerous sites at which they can apply for credit online at no cost. "The website offers one-stop shopping for credit-seekers," said the site's creator, Doug Parent."It's a very well done and comprehensive site," said Amy Yost, a graduate of Marshall University. The site is designed to offer greater breadth and scope than similar credit sites, Yost said. "Unlike other credit sites, this site doesn't just provide links to other resources; it provides helpful editorial content and...
New Website Gets People Bad Credit Loans
Payday loans > New Website Gets People Bad Credit Loans
Government Offers Government Grants and Loans to Women, Minorities and The Credit Impaired.
WASHINGTON, DC
(ContentDesk) July 13, 2004 --
If you are recently unemployed or credit problems are holding you back from starting a business, buying a home or new car, here is important news. Government and private lending institutions are now joining forces to stimulate the national economy and make it easier for women, minorities and people with poor credit ratings to get low interest loans. President Bush also announced a breakthrough for Faith Based and Community Organizations.Policies have been lifted which prohibited them from receiving government funding based on religious affiliations. Churches and religious based community organizations can now compete on equal footing for available federal dollars.???Terry Newborn, a researcher for Government Publications in Washington, DC reported, "There are billions of dollars in grants and loans earmarked for people previously identified as credit risks.
Public and private funds are now available for them to...
Payday loans > Government Offers Government Grants and Loans to Women, Minorities and The Credit Impaired.
How Much Home Loan Can I Afford?
Have you ever asked yourself how much home loan can I afford? If you know how much of a payment you qualify for before shopping for a home, your purchase will go much smoother and it can save you a lot of headaches.
How would you like to find the perfect place to live then not know if you can qualify for the loan? Long before you even start looking for your home, you need to know how much home loan you can afford. Many factors are involved to qualify for a loan. Each lender has different guidelines and there are a multitude of different types of mortgage loans.
Jumbo mortgage loans will be harder to qualify for than a conforming mortgage loan.
Other factors like down payment, loan amount and what is considered a good credit score will also make a difference.
There are some general guidelines lenders use that will help answer your question, how much home loan can I afford? These are only rough estimates, but you can get a good idea if you will qualify...
Payday loans > How Much Home Loan Can I Afford?
Auto Loan Calculator - The Fast and Easy Way to Calculate Your Finances when Purchasing a Car
Copyright 2006 Dean Shainin
Getting a car can be very exciting and yet be oh so nerve wracking. It's not just a matter of finding the car you want and paying for it. For some people who can actually afford to hand out the cash they can enjoy this pleasure, but for most people who are out in the market for a car, they don't have this luxury.
For many people looking for a new car or for a vehicle to replace their old ones, getting a car loan is an option they need to take. Buying a car on credit requires a lot of attention to details; there are interest rates, the monthly payments and tons of paperwork.
It is not advisable to just sign off on the loan without seeing if you can actually afford the monthly payments.
When calculating your monthly payments on your car loan you need to take many aspects into consideration. The amount of the car loan, interest rates, trade in value of your old car, outstanding loan of your old car (if any)...
Payday loans > Auto Loan Calculator - The Fast and Easy Way to Calculate Your Finances when Purchasing a Car
Cash Advances and Hidden Fees
Many people think that cash advances are only simple loans that have a small bit of interest added onto them. This is not true.
If you manage a cash advance loan without attention to details, then you will finish up regretting it for months to come. For this reason, you must be very careful, because these fees that are attached to cash advances are not mentioned in percentages or amounts.
If you get a large loan, you might have to pay approximately 5% of it as interest, and the more loans you have the more interest you will need to shell out.
A cash advance usually begins satisfactorily with you getting the extra cash, but then you must begin paying it back. In the beginning, the repayment process may all be going easily - the small payments not causing too much of a trouble for your pay check.
Then you may have too many bills come in at the same time and you think "if I miss one payment then I will be all right," but you would...
Payday loans > Cash Advances and Hidden Fees