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Local Voices

What to do if you have a commercial balloon mortgage?

Many people that have a commercial mortgage loan (especially if it has been done in the last several years) may have a balloon payment coming up.  In this scenario, consumers need to know that the commercial lender who has your loan is looking for you to refinance out of your present loan or pay off the balance in cash.  Balloon Commercial Mortgages are not like residential ARM mortgages where at the end of the term the rate may begin fluctuating up or down depending on the market.  When your commercial mortgage balloon is due, most of the time if not every time, you are penalized greatly until you either payoff or refinance the mortgage.  This penalty usually involves a "penalty fee" that gets added to your balance (and is usually very high) and your rate going up exponentially until you get out of the present loan.

 

Commercial Mortgage Borrowers need to be aware of their upcoming balloon and understand that commercial loans take longer than residential loans to close.  You are going to want to give yourself 90 days if not longer before your balloon is due to begin the process with a new commercial lender.  Waiting until the last moment will usually end with you not only still having to refinance but also paying the large penalty balloon fee.

Find out what's happening in Windsor Locks-East Windsorwith free, real-time updates from Patch.

 

We would like to offer our services to help you navigate through the commercial loan process and avoid paying the penalty fee.  We are Northeast Financial and located in Middletown, Connecticut.  We cover our home state as well as New York, New Jersey, Massachusetts, Rhode Island, New England, and Pennsylvania.  We offer Commercial Mortgage Loans for you to refinance our of your balloon.  We have a true "Stated" program that offers both ARMs (no balloons on our loans) and fixed rates.

Find out what's happening in Windsor Locks-East Windsorwith free, real-time updates from Patch.

 

Here are the property types we will lend on:

·          Multifamily- Apartments

·          Mixed Use Properties

·          Commercial Condo’s

·          Offices

·          Retail

·          Warehouse

·          Self Storage

·          Automotive Services (no gas stations on this program)

 With less documentation required, no upfront out of pocket costs, we have the solution to protect you and your company today through our quick and easy Stated Program.

 

Thank you for your time,

 

Christopher Adams

Vice President Commercial Real Estate

Northeast Financial

210 S. Main St. First Floor
Middletown, CT 06457

Office phone: 860-788-7237 
www.northeast-mortgage.com
cadams@northeast-mortgage.com

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