WHERE is the logic during this economy in my bank not LOWERING my higher commercial interest rate?
by Mortgage Rates on Wednesday, September 29th, 2010 | 4 Comments
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You WANT a lot of money from lender. You are petitioner.
Bank doesn’t have to lend you money, and can offer terms which you don’t like, due to their assessment of risks. You can check out other lenders, come up with cash, or deal with them.
They make more money if they keep the rate high?
The circumstances of how loans are given have changed in the past couple of years. While you have been reliable in paying your mortgage your loan still represents risk to the lender. You are lucky that your commercial property is leased, but the lender realizes that the solvency of your tenant is not guaranteed in these tough economic times and if they suddenly close down, that will put a major strain on your ability to make your payment. The lender doesn’t want your building, they want the loan payments.
The risk remains until the loan is fully repaid. The only way the risk would be lessened is if you repaid the loan faster, which means you would pay more per month, not less. And you want the bank to lower your payments? Hmm … do you lower your rent to your tenants after 7 years of being a tenant? Of course not.
Recheck the math on the interest savings on the 1/2 %, I bet it is more than you realize if your loan amount is more than $150k
well, you liked the loan when you got it and now you feel entitled to more, you want to make money from your business but you find it unreasonable that the bank would also want to make money…..interesting…..