Ask the "Mortgage Man": COULD THIS BE THE TURNING POINT IN CREDIT SCORING...

Ask the "Mortgage Man": COULD THIS BE THE TURNING POINT IN CREDIT SCORING...: FICO scores will be rescored as of the fall of 2014.  For a long time, unpaid collection accounts have been the thorn in the sides of many b...

Commercial Loans in the Lehigh Valley requiring NO Appraisal!

Can you imagine buying a commercial property and financing this piece of real estate without having the bank order an appraisal?  Most commercial appraisals cost upwards to $2,000 per appraisal.  This is not only extremely expensive, but a commercial appraisal can be much more time consuming than a residential appraisal.  There is so much more paperwork and analyses that needs to be done to complete a commercial appraisal.  Since there aren't as many commercial properties selling in this market, the appraiser must go to remote areas to find similar properties to compare to the subject properties value.  Since most of my commercial loans don't require appraisals, I save my customers lots of time and money.  We can close most commercial loans in under 30 days!  In addition, I shop for the lowest interest rate which is now as low as four.  For a low cost, low rate commercial loan with the fastest closing, you need to look no further. 

Andy Williams
President
Abacus Regional Mortgage
484 695 5972
NMLS # 118317

Commercial Loan Rates Drop....Finally!

For years, interest rates on commercial loans have been much higher than standard 30 year fixed rate mortgages for a primary residence.  The rates for home loans have been coming down lower in the past few years to record lows.  Most homeowners have refinanced their mortgages to the lowest payments possible, but commercial loan rates have remained steady. There has always been a difference in interest rates between the two types of mortgages of between .5 to 1.5% in rates.  Never before has the spread been as much as 3 % higher for commercial loan rates.  Until recently, rates on commercial loans have been TWICE the rate of residential home mortgages.  The reasoning of most banks has been that they are lending to businesses based on the depositors who have money in their banks.  These institutions have been paying depositors less than 1% on their savings accounts and CDs, yet they are charging 6.25% to the commercial borrowers. Since they have a limited pool of funds they can't lend like the banks who are selling their residential loans to Fannie Mae and Freddie Mac.  These agencies have an unlimited amount of funds to lend to the banks, making them flush with funds available to lend to homeowners.  Finally, they have come to realize that these low interest rates on home mortgages appear to be staying at these record low levels for quite some time.  In sympathy with the home mortgages, many local banks have reduced their lending rates on commercial loans to as low as 3.75%.  This marks a sharp reduction for what they were charging as recently as a few months ago.  Since most commercial loans are much higher than residential loans, the monthly savings will be significant.  If you haven't taken advantage of these low rates for businesses, you may get in touch with your current lender, or if you own a business in Pennsylvania you can call me.

Andy Williams
President
Abacus Regional Mortgage
484 695 5972