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Safety of 75% financing or less - Part 1

This article will tell you how safe 75% commercial financing can be compared to other higher amounts of financing.

What's 75% commercial financing? It's commercial mortgage-loan financing you get that equals 75% of the price of the commercial real estate you want to buy. Which means, that when you opt to get 75% financing, you're choosing to make a down payment that equals at least 25% of the price of the commercial property you're gonna buy.

Choosing to get 75% financing for your commercial real estate, or less than 75% financing for your commercial real estate. is a safer option than say, getting 85% or 95% or 100% financing for your commercial property. How is it "safer?"

It's always safer to borrow less

First of all, you'll be borrowing less mortgage-loan-money to purchase your commercial real estate: and it's always good to borrow as little as possible. Did you know that when you get mortgage-financing, say even at a low rate of even 3% - that if you amortize your commercial mortgage-loan for 25 years, you end up paying double what the commercial real estate is worth in mortgage payments? Yeah, whoa.

But if you put a good amount of money up front when you get your commercial financing: a good 25% of your commercial real estate's purchase price, your mortgage-loan won't cost you so much in the long run.

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It's safer to be able to pay-off your financing quickly, or in smaller amounts

Also, when you get up to 75% commercial financing, since you're borrowing less than you would with say, 95% financing, you'll be able to pay back your principal faster. (Your principal is the amount of mortgage-money/financing that you borrowed).

When you can pay back your mortgage-loan-principal faster - you don't have to deal with economy hiccups and changes for years and years and years. You'll pay-back your commercial financing with less hassle.

The alternative to paying off your 75% financing faster, is to pay it off in smaller amounts - so you'd make commercial mortgage-payments on your financing each month that are ultra-tiney. And that can be safe in it's own right.

If you choose to make smaller payments on your commercial mortgage loan financing over a longer period of time - yes, you'd have to deal with uncertain economy changes. But you'd have the safety of teeny mortgage loan payments: so no matter where you are work-wise, or income-wise, your mortgage payments will be little enough to not ever be a burden.

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Get more info on commercial mortgage loan financing, by contacting The Mortgage Store Online's brokers. Just use the finance contact form or call them at 1-866-674-0548.

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