Commercial Mortgage Solutions

There are a number of commercial mortgage solutions that can save you money in order to make your business more profitable. Due to the sheer size of commercial mortgage loans, many of them in the multi-millions of dollars, obtaining the right mortgage loan is necessary to keep your business profitable. If you believe your loan is no longer working for your business, consider restructuring the mortgage through one of the many strategies available to you.

Refinancing

One option to solve your commercial mortgage problems is a refinance. A refinance simply means taking a new loan to cover the cost of your existing debt. This new loan can be made through the same company that houses your current debt, or it can be offered by a third party. If you plan on going through your current lending company, you will save yourself fees and penalties. However, you may not obtain the lowest rate available. Since the lender already has your business, it may not be as competitive as another lender. On the other hand, if you go through a third party, you may find a more competitive rate. This rate should be weighed against penalties with your existing lender to determine who offers the best solution to your current problem. 

Consolidating

If you are like many holders of commercial mortgages, you have more than one loan. You may be invested in multiple properties, own multiple businesses or otherwise have a wide variety of debts. You can consolidate these debts into a new loan that may offer you unique benefits. In doing so, all of your smaller loans will be paid off. This can immediately boost your credit score, and you may even save money. However, it is just as likely that your current commercial lenders will penalize you for repaying your debts early. Talk to your current lenders about a payoff quote to learn if you will be penalized for consolidation.

Buy Downs

Buy downs can be good options if you would like to reduce the cost of your loan overall and make your payments smaller in the coming years. With a buy down, you agree to repay a certain amount of interest on your loan upfront. As a benefit, the lender will typically discount interest for you. For example, if you would typically owe $50,000 of interest in three years to the lender, you may be able to pay $40,000 up front. Not only do you get the $10,000 discount, you also have smaller monthly payments for those three years. You have already paid interest for those years. This is particularly helpful if you know you will need extra cash during this period of time to meet other business demands. You don't have to buy down 100 percent of the interest, either. Even paying a small amount of your interest up front can save you a large amount of money in the coming years and make your loan cheaper in the long run.

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