What is a Commercial Mortgage?

Written by John Mussi


Continued from page 1

The interest rates on commercial mortgages tend to be lower thanrepparttar interest rates on unsecured business loans andrepparttar 143464 repayment terms are usually longer. This makes them useful for all sorts of business financing requirements.

A commercial mortgage can be a cost-effective way to fund many business activities. They can be used to develop an existing business throughrepparttar 143465 purchase of increased office or factory space.

A commercial mortgage can also provide a way of raising additional business loan finance, ifrepparttar 143466 finance is linked to business activity.

The amount of loan required andrepparttar 143467 level of interest charged will depend on your credit worthiness and an assessment byrepparttar 143468 provider of your ability to repay. If you have an exemplary business record and have other visible business assets which can be used as a guarantee, then you'll have no trouble getting a commercial mortgage at an attractive rate of interest.

A commercial mortgage can be available for almost any period from 12 months to 25 years.

There are generally two types of interest schemes available when you are applying for a commercial mortgage, fixed rate and variable interest rate.

The Lender will usually ask you to provide your last three years of audited financial statements including a Profit and Loss statement, balance sheet and a cash flow forecast.

Commercial mortgages are specialised becauserepparttar 143469 lender has a legal claim overrepparttar 143470 property untilrepparttar 143471 loan has been repaid in full. Inrepparttar 143472 event of non-paymentrepparttar 143473 property can be repossessed and sold to repay outstanding mortgage balance.

You may freely reprint this article providedrepparttar 143474 author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.


Home Loans -- Federal Regulators Warn Lenders to Be More Careful

Written by Charles Essmeier


Continued from page 1
a home’s value.

The problem with such loans is that they are both issued underrepparttar assumption that home prices will continue to rise. Prices may continue to rise, but if they don’t or worse, if they fall, lenders could find themselves inrepparttar 143463 ugly position of holding liens on property that is worth considerably less thanrepparttar 143464 amount ofrepparttar 143465 loan. As of yet, there’s no sign of a crash in real estate prices, but foreclosures are up in both Texas and Florida, and this could be an indictor of more difficult times ahead forrepparttar 143466 lending industry. The banking regulators didn’t issue any orders regarding how high-risk loans should be handled, but they did caution lenders to checkrepparttar 143467 credit scores of borrowers carefully and to eschew or cut back on so-called “no-doc” loans, which do not require full documentation of a borrowers assets or income.

This should be of relatively little concern forrepparttar 143468 average borrower, who would probably think that such guidelines represent ordinary common sense. Unfortunately, common sense sometimes gets ignored during boom times in business, only to be remembered when buyers start to default on their loans. By that time, it’s too late to do anything, andrepparttar 143469 stockholders are left withrepparttar 143470 debt.

©Copyright 2005 by Retro Marketing. Charles Essmeier is the owner of Retro Marketing, a firm devoted to informational Websites, including End-Your-Debt.com, a Website devoted to debt consolidation information and HomeEquityHelp.net, a site devoted to information on home equity loans.


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