Decreasing My Monthly Bills

Although I’m not a spendthrift, I feel as if I never have enough money in my bank account. Because I’m setting aside cash in order to buy a new home, I’m always searching for ways to decrease my monthly expenses. Fortunately, through my research, I’ve found some great, simple tips that provide substantial savings over time. For instance, I turn off my HVAC unit whenever I’m traveling. I also conserve gasoline by running all of my errands for the week on the same day. On this blog, I hope you will discover some easy, painless ways to lower your regular monthly bills. Enjoy!

Need A Commercial Loan? 2 Questions You Should Ask Yourself First

Finance & Money Blog

If you're in need of a commercial mortgage loan, it's important that you take your time before you sign on the dotted line. If you've never applied for a commercial mortgage, you might not realize how different they are to standard home mortgage loans. For one thing, commercial mortgage loans are secured by other commercial property, which means if you fall behind on your payments, you risk losing your other commercial properties. Another difference is that some commercial mortgages are usually due payable within a 10 year period, instead of the standard 30 year period for residential mortgages. Before you apply for a commercial mortgage loan, here are two questions you should ask yourself. 

How Much Should You Borrow?

Before you decide on a loan amount, you should know that most banks will not offer subsequent loans until the first commercial loan is repaid. That means you should make sure that the loan you apply for is the amount you'll need for all of your business expenses. It's also important that you choose an amount that you can realistically pay back within the allotted time. It's important to note that most mortgage loans will need to be repaid before the actual deadline, and that to accommodate that, most lenders will require a substantial balloon payment near the end of the repayment cycle. Which brings up the second question you should ask yourself.

Will You Be Able to Meet the Loan Repayment Obligations?

Once you've taken out the loan, you'll need to ensure that you'll have sufficient money flow to make the scheduled payments. That cash flow should include the balloon payment that you'll be expected to make. If you're unable to make the balloon payment, you'll either have to refinance the loan, or requalify for the loan you have. If you've fallen behind on payments in other areas, or you have a lower cash flow than you did when you originally took out the loan, you may not qualify for the refinancing. If that happens, you could be in jeopardy of losing your business when you default on the loan. Before you take out your commercial loan, be sure you'll have enough cash flow to save for the required balloon payment.

If you're going to apply for a commercial mortgage loan, it's important that you understand the process before you apply. Use the questions provided here to help you determine how much money you should borrow. For other questions regarding a commercial loan, be sure to speak to a loan officer (such as one from State Bank of Cross Plains).   


1 July 2016