Last updated 6 days ago
One major difference between commercial and residential loans is the risk involved. Commercial loans are usually more expensive than residential loans. This puts more financial risk, pressure, and uncertainty on the lender. Therefore, commercial mortgage brokers have structured the commercial loan standards and practices differently than those of the residential loan process. In some ways, a commercial mortgage is similar to a residential loan, but there are some major differences.
- A Larger Down Payment Is Required on a Commercial Loan
In most residential mortgage transactions, the lender will ask for a 20 percent down payment. However, there are a number of loan programs that waive this requirement. In fact, potential homeowners can purchase a home after only putting down three to five percent. The commercial loan industry, however, is more careful. Most commercial mortgage brokers require a substantial amount of equity to be put down before they will process the loan request. These mortgage brokers want to make sure they have a very good chance of seeing their money again and receive a positive return on their investment via interest.
- Interest Rates are Higher for Commercial Loans
Due to a limited secondary market, the risk involved, and the high price for commercial properties, interest rates tend to be higher on commercial loans. What’s more, commercial mortgages are offered at shorter terms so that the lender can recoup their capital investment sooner. On the other hand, there is a large secondary market for residential properties. Banks can easily transfer the loan to mortgage investors and recoup their capital investment. Therefore, they tend to offer competitive interest rates on residential loans.
- Commercial Loans Often Involve Balloon Payments
A balloon payment mortgage does not amortize over the term of the loan, and therefore, leaves a hefty balance due at the end of the term. These are common on commercial loans, but rarely seen on a residential mortgage.
Whether you’re in the market for a residential or commercial loan, the mortgage experts at Pioneer West Acceptance Corp. can get you the financial assistance you need. Call us at (866) 217-2518 to schedule a consultation today.
Last updated 13 days ago
Often, people feel they are left to fend for themselves when it comes to figuring out the mortgage process. However, mortgage brokers are available to help make the process easier to understand and to make applying for the right mortgage hassle-free. For more on how you can benefit from hiring a mortgage broker, read through the following article.
1. Save Time and Energy
Most lenders encourage you to do your own research when it comes to determining which mortgage option is right for you. An experienced mortgage broker can save you time and energy by evaluating your financial situation and guiding you toward making the best and most affordable decision when it comes to choosing a mortgage option.
2. Get the Help You Need Researching Your Options
If you’re busy managing a career, running a household, or both, then you might not have time to research the various mortgage options for which you could apply. In this case, you could benefit from hiring a mortgage broker who can research your options for you. Your broker will conduct the necessary research, make any necessary follow-up calls, and examine your finances so that he or she you quickly help you make the best decision about your long-term finances.
3. Get Industry-Specific Mortgage Information
A mortgage broker has specialized knowledge about the intricacies of the mortgage industry. This means that a broker can help you calculate which mortgage option will best suit your current financial situation. He or she can also help you determine how much you can save by choosing a shorter term mortgage. A mortgage broker can help you find discounts, qualify for a low interest rate, and save you from spending money on excess fees.
When you’re ready to apply for a mortgage, call Pioneer West Acceptance Corp. Our brokers can help you make well-informed, affordable decisions about your mortgage options. We specialize in residential and commercial mortgage transactions, so call us at (866) 217-2518 and let us start helping you today. For more information, visit our website.
Last updated 20 days ago
The road to homeownership can be a long and bumpy one, especially when it comes time to apply for or refinance a mortgage. The following list contains links to articles that provide helpful information on the mortgage application process:
- This article from HGTV.ca features advice on finding the right lender and choosing the best mortgage option for you.
- Is taking out a second mortgage the right financial move for you? Find out by reading through this article.
Whether you need help taking out a second mortgage, refinancing your home loan, or choosing the right first mortgage, you’ll find expert advice and superior service at Pioneer West Acceptance Corp. Call us at (866) 217-2518 to get started on your next financial move.
Last updated 27 days ago
If you’ve never applied for a mortgage, it’s important to do your research before contacting your lender. You’ll need to determine approximately how much you can afford, which mortgage option is best, and how to apply.
In this video, you’ll gain some insight into what your bank or lender will be looking for when determining whether you’re a good candidate for a loan. It’s beneficial to have done your research before meeting with your lender so that you understand what will occur during the loan application process.
If you’re in the market for a mortgage lender you can trust, contact Pioneer West Acceptance Corp. We can help you qualify for affordable refinancing, second mortgages, home equity loans, first mortgages, and more. To begin, call us today at (866) 217-2518.
Last updated 1 month ago
If you’re having trouble paying for your child’s tuition or coming up with the money to renovate your home, you may benefit from taking out a second mortgage. Below, you’ll find information that can help you better understand what this financial transaction is and what it can mean for your home.
- What is a Second Mortgage?
A second mortgage is an additional loan that is paired with your original home mortgage. Taking out a second mortgage can help you acquire more equity in your home, which is why many homeowners apply for one. When you take out a home loan, the lender files a lien against the home, allowing for its repossession of the home if you cease making payments. When you take out a second mortgage, another lien is filed, ensuring that the other lender receives proceeds from the sale of your home should you default on the loan.
- What Type of Second Mortgage is Right for You?
There are two types of second mortgages: home equity loans and lines of credit. If you opt for a home equity loan, you’ll receive a lump sum that you’ll be required to pay back over a fixed period of time. If you opt for a home equity line of credit, your second mortgage will function like a credit card, where you’ll have a limit that can be reused as you pay down the balance each month. The amount of money you can receive from both types of second mortgages is determined by the amount of equity in your home, which represents the difference between the amount you owe on your original mortgage and what your home is worth.
- What Should You Consider Before Taking out a Second Mortgage?
Before deciding to take out a second mortgage, you’ll need to consider the financial implications and your other options. Refinancing your original loan might be a safer option, but only your lender or bank can say for sure.
If you would like to know whether taking out a second mortgage is right for you, contact Pioneer West Acceptance Corp. We employ Canada’s leading mortgage brokers and provide affordable mortgage options, so call us at (866) 217-2518 to learn more.
