Author Archives: ipgocorp

Mortgage Rates – What Determines Your Mortgage Rate?

Posted on by

Mortgage Rates – What Determines Your Mortgage Rate?

Many people are confused as to what exactly determines the mortgage rate or rate of interest they get when securing a new home loan or refinance loan. There is no fantastic mystery, the rate of interest gets determined by a predetermined list of factors. The level of importance that each individual lender places on each factor varies, therefore doing your due diligence and finding a lender that offers you the best rate for your circumstances is key to securing the lowest mortgage rates possible.

It is also wise to make sure you take some time to clean up your portfolio and make yourself as attractive as possible as a borrower. The lenders will look at the following factors to determine what your rate will be.

1) Amount of your down payment. This will affect your rate in two ways. First, the higher the percentage your down payment amount is of the total loan amount, the lower your interest rate will be. Second, the less your loan amount, the less interest you will pay.

2) Consideration of closing costs.

3) Your income. The more you make, and CAN PROVE you make, the less risk you are as a borrower, and the less your mortgage rate will be.

4) How long your mortgage is for. The more years, the more interest.

5) The amount you’re borrowing. Again, the more you borrow, the higher your rate will be.

6) Is the loan a fixed rate or is it adjustable? Of course, an adjustable rate mortgage will start you off with a lower rate but can balloon once the term of the loan is over. Be careful.

7) Credit score. The higher your credit score, the lower the rate.

Lenders like to see credit ratings of 720 or more these days.

8) Debt to income. Pay off your credit cards, pay down car loans or pay them off if you can. The better your ratio of debt to income, the lower your rate of interest will be.

Do not commit to any loan without knowing for sure that it contains the best rates and other terms for you. The lenders are out to get the best deal for them. Visit the Online Home Loan Directory for information on how to get the best deal for you. It’s a free online resource looking out for borrowers.

Lastest Bridge Loans News

Posted on by

Pryme Energy to access US0M debt facility to develop Turner Bayou oil project
Macquarie Bank has also provided a US$ 5 million Bridge Loan Facility to fund the next Turner Bayou Austin Chalk well, Rosewood Plantation 21H, pending finalisation of the definitive credit agreement and other loan documents for the Term Facility.
Read more on Proactive Investors Australia

ThaiBev gets loan for Fraser & Neave deal
SINGAPORE–Thai Beverage PCL said Saturday it has secured bridge loans worth 2.8 billion Singapore dollars (US$ 2.25 billion) to fund its acquisition of a 22% stake in Singapore beverage company Fraser & Neave Ltd. . The loans, with a tenure of one year …
Read more on MarketWatch

Nuvolt Corporation Announces a Bridge Financing
LEVIS, QUEBEC — (Marketwire) — 08/23/12 — Nuvolt Corporation Inc. ("Nuvolt") (TSX VENTURE:NCO) announces the conclusion of a bridge financing of $ 425,000 from entities affiliated to members of its Board of Directors, in the form of a loan bearing …
Read more on Stockhouse

Commercial Loan Rates

Posted on by

Commercial Loan Rates

Does The Loan Make Sense?

Commercial and small business loans must make sense for the lender and the borrower. Lenders like to see that you are a excellent credit risk and they will be able to recover their investment. Sometimes, if you are a new business or operate in a risky business sector that will be reflected in the loan offers you receive. You may be offered a higher rate to offset the risk you pose to your lender. On the other hand, it is often much simpler to obtain small business or commercial financing than it is to get a residential loan. Lenders make decisions based on your loan package, or loan application. They review the information to determine whether lending you money makes sense financially.

Commercial And Small Business Interest Rates

Commercial and small business financing is available from many different sources. You could utilize a finance company, a domestic bank, an international bank, a large institution, or small. Do your homework, know exactly what you need and why you need it and you will increase your chances of working with a lender that can offer you the right loan for you commercial and small business needs.
Remember that commercial rates and terms will vary based on region, the strength of a company and the value of its assets. Foreign banks tend to offer the lowest interest rates, while small domestic banks usually offer higher rates. 
Here are some average commercial and small business interest rates:

Average Interest Rates (varies based on LTV, DSCR, loan amount, overall loan quality, etc.): 

Office: 5.65% – 8.50%
Retail: 5.75% – 8.85%
Industrial: 5.75% – 8.75%
Multifamily: 5.25% – 7.35%
Mobile Home Park: 5.50% – 8.70%
Hotel/Motel: 6.25% – 12.0%
Healthcare: 6.65% – 10.15%
Self Storage: 5.90% – 8.55%
Mixed Use: 6.70% – 12.5%

What Else Do I Need To Know?

There are many details you will need to be aware of as you search for commercial and small business financing. The following tips should get you started on the right path.

• Question about the average maturity or interval between rate adjustments. Usually a longer maturity is preferable, especially when rates are going up, as it brings steadiness to your organization’s financial plotting. Recently, small domestic banks offered small business and commercial loans with the longest maturity. Foreign-based banks offered loans where the maturities were shortest.

• Question your lender about ‘call provisions’ in your loan. A call provision enables your lender to ‘call’ your loan due if you fail to uphold your end of the agreement. Many small businesses look for non-callable loans. Most commercial loans do not include this provision; but, foreign-based banks are nearly twice as likely to require this provision as a condition of your commercial loan.

• Question your lender if your small business or commercial loan includes a pre-payment rider. This is a loan provision that requires you to pay a fee if you pay off your loan early. Sometimes your lender will remove it, or, offer you alternative loan options that do not include a pre-payment penalty.

Click here to Learn more about commercial Mortgages and Small Business Loans.

Harris & Associates of New York, Inc. is an International small business & commercial lender. This direct lending company serves the USA, UK, Canada and limited regions of the Caribbean. Headquarters are located in New York, NY.

History 
Harris & Associates of New York, Inc. was founded in 2005.

Loan Types
Harris & Associates of New York, Inc. offers many varied commercial & small business loans