What is a Commercial Mortgage?

The loan that is taken out to buy a business asset is generally termed as commercial mortgage. Commercial mortgages are used to buy offices, shops, restaurants or other type of (generally) building. But they can also be used to buy other business assets such as plant or machinery.As well as being a useful way of financing the purchase of business premises for a new business, commercial mortgages can also be an excellent way of funding the expansion of an existing business. A commercial mortgage can also be used to fund investment in land or property which will be used for commercial purposes.Cost wise, a commercial mortgage is generally cheaper than a outright unsecured loan. This is because the mortgage is offered against some business assets, and only if the business logic and makes sense, and business plan supports it. This also means that the payment terms are also longer, generally 10 or more years. So the repayment amount is not that high, making a better option for a business' cash flow.Can you remortgage an existing commercial mortgage?Of course. If you already have a commercial mortgage on your company's business premises, you might find you could benefit from remortgaging. A commercial remortgage allows you to unlock some of the equity that is currently tied up in your commercial property. It could also be a chance to switch to a more competitive, cheaper mortgage, especially if your or your company's credit rating and business history have improved since you took out your original commercial mortgage. The money you free up through a commercial remortgage can be used for all sorts of things for your business. For example, you could purchase additional stock, or invest in new machinery or other fixed assets such as vehicles. Another use for the extra money can be to pay off outstanding bills, or clear other borrowings such as the company's overdraft. Here are some typical uses for a commercial mortgage or remortgage: - Borrowing money to buy a shop - Raising finance to purchase an office building - Buying a pub - Financing the purchase of a restaurant - Buying a hotel - Buying a house to convert to a Bed & Breakfast (B&B) - Raising finance to buy an existing business - Clearing a business overdraft - Improving business cashflow - Buying new plant or machinery - Financing the purchase of company vans and other vehicles - Borrowing money to buy extra stock for your business - Funding the expansion or refurbishment of your offices - Borrowing money to pay for training - Buying land for business purposes It is always best to shop around and secure the best deal for your business. With fierce competition among banks, it is always possible to secure the mortgage on favourable terms to YOUR business, and not to the bank.
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Thinking About Buying A Vehicle? Here Are Some Things You Should Consider Before You Do!

You're thinking about purchasing a vehicle but are not quite sure about what type of vehicle you should choose. Well, it's not easy making decisions about a major purchase. Especially if it's a vehicle you're about to buy. Before you decide, take a look at these tips and information which may help you in determining what vehicle may be right for you:1) First and foremost, how much money do you have to spend for a vehicle which will fit comfortably within your budget? That's right! Can you afford to add a monthly payment to your budget for a vehicle? If so, how much can you afford to spend without creating problems with your finances. Think about it, and make the decision which will be right for you. 2) After you make the decision to purchase a vehicle, determine what you will be using the vehicle for. This will assist you with deciding on the type of vehicle you may want to purchase. For instance, do you have a long commute to your job? You may want to purchase a vehicle that gets good gas mileage.3) Do your research on the vehicle you want to purchase by using the internet as a resource. This is by far your greatest source for getting the best price on the vehicle you want to purchase. For example, a source you may want to consider viewing, would be www.edmunds.com. At that particular website you can get information on the dealer's invoice pricing. This will assist you in negotiating the price of your vehicle with the dealership you're considering purchasing your vehicle from. In addition, you may want to also consider checking out www.cars.com and www.pricequotes.com to assist you in securing pricing information for your next vehicle.4) Get your financing before you make your vehicle purchase! That's right, get pre-approved. By doing this, you'll be in the driver's seat when you're negotiating your vehicle purchase with the seller for the vehicle you're trying to purchase. You'll want to research the best interest rate you can get. A great way to do this is also via the internet. Some of the websites you may want to consider checking for vehicle finance rates are: www.bankrate.com and www.eloan.com. 5) Make sure that you check your credit report and FICO score prior to applying for your vehicle finance loan. You want to ensure that you know your credit history and score so you'll be in a better position to negotiate your interest rate with your prospective lender.6) To buy or lease what should I do? Good question. That will depend on what you will be using your vehicle for. You'll need to determine the pros and cons of leasing or buying. You'll want to think about the number of miles you'll be driving per year, money you have for a down payment, how long you want to keep the vehicle and anything else you can think of. To help you decide whether or not you should lease or buy, you may want to do some research by using the internet and visiting such websites like www.smartmoney.com. . Websites like this, can provide you with detailed information on whether or not you should lease or buy your next vehicle.So, you can see how important it is to do some research before your purchase your next vehicle! You'll be in a better position with the information you have obtained when you're ready to make your purchase. You'll be glad you got the information before you attempted to purchase your vehicle. You've probably not only saved yourself lots of time, but, more importantly you've saved yourself money and have become more educated as a consumer about purchasing a vehicle in the long run!
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Things You Should Know Before You Choose a Home Equity Loan

Don't even think about applying for a home equity loan until you know enough about them to make an educated decision.Interest Rates - Before you apply for a home equity loan, you must understand the real meaning of the interest rate you are quoted. The Annual Percentage Rate (APR in banking lingo) is the key. Typically, the lender will give you an attractive introductory rate (a discounted rate) on a home equity loan to lure you in for the loan, but that rate only applies for six months or so, and then most home equity loan rates default to a variable rate that is dependent on the prime rate dictated by the Federal Reserve Bank. Find out what the 'ceiling' is on the interest rate for that loan (in other words what is the maximum the loan interest rate can increase on this loan over its life time?), and be sure you can handle payments at that rate before you sign on the dotted line.Don't make the mistake of comparing the interest rate for a home equity 'line of credit' to the interest rate for a home equity 'loan'. These are structured differently. You CAN, however, compare the interest rate of one home equity loan against another home equity loan, and draw some conclusions from that comparison. Just be sure you comparing 'apples to apples'. If the term of one loan is different than the term of another loan you can't compare the two equally. Total Cost of the Loan - You can't look at the interest rate or APR alone because that doesn't offer a complete picture. When you close on a home equity loan you have to consider closing fees and points on the total loan amount. To close on this loan, you will have to pay a property appraisal fee so that the bank can estimate the value of your house or condo and determine how much money they will lend you. You will also have to pay an application fee to some banks, and points on the loan (one or more points as a percentage of the credit limit), and possibly title search fees, and attorneys fees depending on the size of the loan and the state in which you apply for the loan. In addition, some banks charge a transaction fee every time you draw down on your line of credit (this applies only if you have a home equity line of credit instead of a home equity loan). Structure of the Loan - Find out if your loan includes balloon payments. It is all well and good to know that you can make the maximum monthly payments, but if the loan has a balloon payment at the end, where you have to pay a large lump sum at the end of the term to pay off the unpaid balance, you may not be prepared to make that payment all at once, and that can be a problem.Balloon payments often result from a home equity loan structure where you only pay the interest on the loan amount throughout the life of the loan. This is great for the life of the loan. But, at the end of the term when you have to pay the full principal (which can amount to $20,000, $50,000 or more), it may not be so great!Typically, the lender can offer you a better interest rate on this loan over the loan life and that looks attractive, but the unfortunate surprise comes at the end of the loan when you have to pay off the entire principal in one balloon payment.In addition to balloon payments, you need to look at the loan-to-value ratio of this loan. Before you panic, we aren't going to give you a lesson in high finance. Loan-to-value (LTVR) simply means the percentage of the total value of your home that your bank will lend you. Most banks used to limit an LTVR of 80%, so if your home value was $100,000, they would only loan you $80,000. But today, some home equity loans allow you to borrow 100% OR MORE of your home value. Again, this may sound like a good deal, but it is not. These loans are more expensive (higher interest rates) and you lose a significant tax write-off because you can only write off loan payments on the VALUE of your home - not payments that exceed the value of your home. Additionally, if you sell your home for its appraised value, you will owe more money on the loan than the proceeds of your home sale will give you. Where are you going to come up with that extra money to pay off the loan?If you take a home equity loan that exceeds the value of your home, you will also have to take out insurance on that loan and that will cost even more money. Stick to loans that do not exceed the recommended limits (70% to 80% of the value of your home, including any outstanding mortgage you may have to pay off when you sell your home) and you will be better off. If you are careful to research and compare banks and loan structures to ensure that you understand ALL charges, and that you avoid balloon payments and overblown loan-to-value ratios, you will protect yourself from unpleasant surprises.
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Getting A Run For Your Money: How Do You Consolidate Credit Card Debt

Spending is such a hard habit to break, especially when people use their credit cards. Once they get addicted, they continuously endure the agony of spending in spite of imminent problems that tag behind. And when things eventually get out of hand, most people will soon realize that they are already stuck with a mountain load of credit card debts. And mornings after mornings, they will wake up each day with worries in their head about how they can repay all of those instant splurges.There's one way to get out of credit card debts-consolidation. Here's a list of ways how to do it:1. Make a balance transfer.One way of consolidating a credit card debt is through a balance transfer. In this way, the person who has a huge outstanding balance on his or her credit cards will get another credit card with a lower interest rate. Once approved, they should immediately get a cash advance and use it to pay off their standing balance on the other credit card. In that way, they consolidate all of their payables into one credit card. Plus, they get to have only one rate to worry.2. Home equity loans can do the job.This is a very workable strategy provided that it will be used properly.Getting a home equity loan is probably one of the easiest things to do. Best of all, home equity loans can offer tax deductions for the interest rate of the loan.However, there is a drawback. The debtor's house will serve as the collateral. But nevertheless, it still one good way of consolidating credit card debts. The debtor should only keep in mind that the money from the loan should only be used in paying credit card debts. If used on other things, it will only worsen the problem.3. Make use of retirement funds.There are instances wherein debtors can make use of their retirement funds in order to consolidate credit card debts. But this should only be made if there are no other options available. This is because this type of consolidating credit card debts can be very tricky.Loans on retirement funds are not actually tax deductibles. However, the problem sets in when the fails to pay back the loan within five years or when he or she will resign from work.Indeed, there are no nippy fixes when consolidating credit card debts. The bottom line is that, it is better if the person will stay out of debt so as not to worry on consolidation matters.
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A Glance At Wrapped Financing

So you have heard that seller financing is a great way to market your investment properties. It broadens your consumer base and puts a little extra cash into your pocket in the form of interest charges. But, there is only one problem. You already have an existing mortgage, and you cannot pay it off unless you receive the sale amount in one large chunk. Before you totally exclude seller financing from your real estate investing strategy, you should know that there is a financing solution that will allow you to finance the property without paying off the existing mortgage in one go. It is called contract financing or wrapped financing, and it is an attractive financing solution that property investors can use to market their real estate investing properties. Wrapping also increases residual income by adding interest fees to your profit margin.Simply put, wrapped financing occurs when an investor keeps the current mortgage that he has taken out but offers to finance the property for the buyer himself. An example of this would be an instance where an investor is holding a $50,000 mortgage at 7 percent interest and wishes to sell the property for $200,000. The seller would loan the buyer the full $200,000, minus any down payment, at a higher interest rate of 8 percent. The monthly payment for the $200,000 would then be split with part of the payment being directed toward the original loan and the rest going to the seller. The seller would also profit from the 1 percent interest hike on the mortgaged amount.As you can imagine, there are many factors that you need to consider before adding wrapped financing to your real estate investing strategy. Mortgages with sliding interest rates might not be ideal for this type of financing. You will also need to make sure that the existing mortgage will allow wrapped financing. Many mortgages demand payment in full upon sale of the property and would not be suited for this type of seller financing. It is also a great idea to use a third party collection agency to collect the loan payments and disperse payment to you and to the original mortgage holder. This not only protects the buyer's interests but yours as well. Loan wrapping is a great way to introduce seller financing to your real estate investing marketing plan, but it is not for everyone nor is it for every sale. Be sure to research each deal thoroughly and follow all legal requirements. Failure to do so might result in the existing loan becoming abruptly due. If this happens, it could affect your bottom line or negatively impact the real estate transfer.
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