In order to get the maximum amount of cash out of your commercial real estate, with a commercial equity mortgage loan, you need to choose a type of equity mortgage loan that can ‘squeeze’ the most cash out of your commercial real estate.
Those types of commercial equity mortgage loans include “closed” equity mortgage loans.
If you decide to get a “closed commercial equity mortgage loan” you can get a more cash out of your commercial real estate than you could with other types of commercial equity mortgage loans. How exactly?
A closed commercial equity mortgage loan has a lower rate than it’s opposite, the ‘open commercial equity mortgage loan.’ All “open” means is that you could pay-off chunks of your new commercial equity-mortgage loan, or completely pay it out ‘for free.’ So all “closed” means is that you’d have to pay a “fee” if you suddenly had the inkling to pay-off your commercial equity mortgage loan before your mortgage term was over.
If you choose a closed commercial equity mortgage loan over an open one, you can get a lower mortgage rate. And when you find out from your broker or bank how much smaller that low-rate makes your future ‘mortgage loan-payments’ – you might realize that you can afford to pay more. And if you haven’t already asked for the maximum amount of equity to be taken out of your commercial yet, being able to afford to pay more on your new commercial equity mortgage loan has it’s benefits.
Say that right now you pay mortgage-payments on your current commercial mortgage loan that are $1000 a month, and the broker tells you, because of the low rate of your new closed commercial equity mortgage loan, that you can get new commercial equity mortgage loan payments that are only $800 a month. You’d realize that since you’re paying a thousand bucks a month anyway, that you could get more cash out of your commercial real estate right away, simply by still paying mortgage loan-payments, on your new commercial equity mortgage loan, that are $1000 bucks a month.
So close in on a closed commercial mortgage loan: and reap the rewards of more cash flow from your commercial real estate!
This mortgage news was brought to you by The Mortgage Store Online: a Canadian mortgage brokerage that offers both home and commercial mortgages throughout Canada.
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