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Safety of 75% financing or less - Part 2

This is part-two of the financing-article that lets you know how safe 75% financing can be compared to other higher amounts of financing. (You can also read part one if you haven't already).

75% commercial financing is mortgage-loan financing you can get that equals 75% of the price of the commercial property you want to buy. Which means, that when get 75% financing, you're choosing to make a down payment that equals at least 25% of the price of the commercial real estate you're buying.

Choosing to get 75% financing for your commercial real estate, or less than 75% financing for your commercial real estate, can be safer than getting even 85% financing for your commercial property. Here's a reason why:

It's safe to have equity in your commercial real estate

Another reason for getting 75% commercial financing - as opposed to a higher amount of financing, like 85% - is because it's safe to have equity in your commercial real estate. What's equity? It's an "amount of mortgage that's paid off" on your commercial.

When you decide to make a down payment on your commercial of at least 25% when you get your financing, it's really like you're putting 25% of your commercial real estate's purchase price into a "savings account."

And having that good amount of equity in your commercial real estate, by getting 75% financing, can be great to have in case of financial emergencies. Sometimes stuff happens - life happens, and you'll know that have an amount of cash that's at least 25% of your commercial real estate's value to draw from.

Get a finance mortgage loan: you can apply online!

Learn more about 75% financing

Get more information 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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