Shrink your payments with commercial mortgage lender secrets
Amortization Period Adjustments
Adjusting the amortization period is another tactic to consider. By extending the amortization period, you can lower your monthly payments, although this will increase the total interest paid over the life of the loan. Conversely, a shorter amortization period can lead to higher monthly payments but significant savings in interest costs. Lenders may offer flexible amortization terms, so it's worth discussing these options during your mortgage negotiations2.
Refinancing Opportunities
Refinancing your commercial mortgage can also lead to reduced payments. If interest rates have decreased since you first secured your loan, refinancing could lower your rate and, consequently, your monthly payments. Additionally, refinancing can allow you to adjust the loan term or switch from a variable to a fixed-rate mortgage, providing more predictability in your financial planning3.