Rollover mortgage allows refinancing of loan balance at the current rate.
Rollover mortgage is best defined as a short term loan in which the unpaid balance is refinanced every few years at the most recent rate. This can be great for a borrower if the interest rates fall in the next few years. It can be a great risk to take if you expect interest to drop. Instead of being locked in to a 15 or 30 year loan with the same interest you will be refinanced. If you aren’t careful a rollover mortgage can really hurt you if the interest jumps up too high and your monthly payments increase.
Be cautious if you pursue a rollover mortgage for your next commercial real estate transaction. If you have a good indication that interest will go down in a few years this is a good option, but if you are unsure it may be best to sign up for a longer term fixed mortgage. The lowered interest can benefit your business by improving the amount of money you pay each month.
We can help your business locate additional working capital by educating you on how to properly apply for and obtain a loan along with telling you how to properly establish your business credit scores. Our Business Finance Coach will show you step-by-step how to accomplish this.
You can also browse our business funding directory which has over 4,000 sources of business capital. Simply tell us a little bit about your business and we will help you find the financing your business needs.