4 Good Reasons to Refinance the Mortgage on Your Commercial Property
By Michael Adams
Real estate is traditionally a sound investment. That’s why you own several parcels of commercial property. You’re thinking about refinancing the mortgage on one of those recently acquired properties. Would this approach really make much of a difference? The answer is yes. With the aid of one of the Clover mortgage refinance options , you can strengthen your financial position. Here are some examples of what refinancing could do for you.
Free Up Some of Your Cash Flow
If the current mortgage is two or three years old, choosing to refinance could allow you to enjoy lower payments without having to extend the mortgage term. Think of what that means to your monthly cash flow. There will be more money that you can use for other investments, making improvements to different properties, or otherwise improving your financial situation. As long as the refinancing doesn’t come with fees and charges that offset the reduction in the monthly mortgage payment, you’ll be able to accomplish more with what you have coming in.
Lock in Lower Interest Rates
Adjustable rate mortgages are great since they often come with a lower fixed rate on the front end. What happens when the term with the fixed rate expires and the variable rate kicks in? You might do quite well or that mortgage may end up costing a lot more.
If you project that the fluctuations in rates will do more harm than good, now is the time to think about refinancing. Go with a fixed rate commercial mortgage that locks in the lower rate for the duration of the financing. Along with no surprises due to changing interest rates, it will be a lot easier to budget.
And Maybe Shorten the Financing Term
Depending on how much you still owe on the current mortgage, it might be possible to refinance and shorten the remaining term. All it takes is comparing how much you would pay the refinancing was five or ten years shorter than what you have in place right now. Assuming that the monthly payment is close to or only a little more than the current financing, the property would be all yours a lot sooner. You would also build up equity in the property faster, something that could come in handy down the road.
Reorganize All of Your Debt
If you already have a significant amount of debt in other ventures, you might be able to scale the refinancing so that the total debt is easier to manage. Along the way, the interest rate you lock in with the refinancing may be considerably lower than the rates that apply to all or most of your other debt. The result is that you settle those other debts now, save money, and may end up being able to pay off the refinanced mortgage around the same time you would have paid off the original one.
There’s a lot to be said for looking into refinancing options for your commercial mortgage. Talk with a broker and see what can be done. Examine each option carefully so there are no surprises when it comes to up-front or recurring fees and charges. If the deal will add more stability to your financial position, refinancing makes a lot of sense.
Source: http://www.zentrader.ca/blog/4-good-reasons-to-refinance-the-mortgage-on-your-commercial-property/#utm_source=rss&utm_medium=rss
Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.
"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.
Please Help Support BeforeitsNews by trying our Natural Health Products below!
Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST
Order by Phone at 866-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST
Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!
HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation.
Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.
MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser! Cleans out toxic buildup with oxygen!
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover - Reduces Smart Meter radiation by 96%! (See Video).