Is it best to pay off commercial mortgage and take an advance on ur residential mortgage
2007-08-15 04:48:26 · 6 answers · asked by hardeep s 1 in Business & Finance ➔ Renting & Real Estate
Only if it will save money on interest.
You will have to consider additional interest on a new equity loan.
If the morgtage is quite old, bear in mind that you've already paid most of the interest in early years and most of the payments now are applied to principal. May apply to both morgtages.
I could amortize all of those from the present balances with the interest rate and term remaining. Also the equity loan, although those are calculated on a minimum payment. You would have to decide a term limit that you can afford, and /or maximum payments.
Excell has this function.
You should have amortization tables to guide you.
2007-08-15 05:05:16 · answer #1 · answered by ed 7 · 0⤊ 0⤋
Residential units are considered 1-4 units. If you stay in one of the units then it is considered an owner occupied property thereby qualifying you for a lower interest rate. Five (5) units and above are considered commercial units. What is the purpose of placing the units in a LLC? Is if for liability purposes? The units that you place in a LLC will not be able to refinance without your personal guarantee, even if you find a lender that will allow the refinance. Some lenders will require you to place the property in your personal name the same as they do those that have family trust. You should consider a LLC after you have several units you can place in your LLC. This way your LLC if ran properly can probably qualify on it's own for a mortgage, because it will have a verifiable income, money in the bank of the LLC. If the LLC can not prove that it can make the mortgage payments have a stable income and other qualifications to satisfy the lenders then you are going to get a recourse loan as oppose to a non-recourse loan. Don't let someone talk you into something that will not help you in the immediate future. Talk to your CPA or person that does your taxes before forming a LLC. I hope this has been of some use to you, good luck. "FIGHT ON"
2016-05-18 03:55:03 · answer #2 · answered by ? 3 · 0⤊ 0⤋
If you're in the UK you can acutally freephone an advisor at Mortgage Link and get an answer considering your requirements and circumstances. You;'ll get a better answer than asking us on here without giving any details.
2007-08-16 03:37:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Get valuable tips on mortgage from http://moneymentor.cashmatter.info . It's a very useful website.
2007-08-16 01:05:15 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Who knows...depends upon you terms...principle balance....expectations...you have provided none of these to consider. Sorry that I can't help.
2007-08-15 05:01:17 · answer #5 · answered by NY PTK 4 · 0⤊ 0⤋
sometinmse the rates are better and terms
2007-08-15 05:00:58 · answer #6 · answered by beachlover 2 · 0⤊ 0⤋