Need a new Loan!

[dogwasher]

You guys had a post a few weeks back talking about your loans being reduced to approximately 5.9% (one of ya got a 4.9 unbelievable) So I called my bank and asked them to lower my 6.9 Loan and after one week of haggling with them they decided that my 6.9 was good and fair. Needless to say I'm not sitting well with there answer so I'm moving on with plan B.
Any input would be nice!

Thanks

 

[Ghetto Wash]

I'm at Bank of America with two loans at 6.3% and 6.125% fixed for 15 years fully amortized and Chase with 6.25% fixed for 15 years fully amortized. After reading the thread you mentioned I called them and was told for fixed, rates would run about Prime +2.5 to +.3.0. Not worth refinancing for me yet. I think their rates should be lower. I might try a local bank I have a relationship with, though they wont go fixed for 15 years, only 5 years at a time.

 

[washnvac]

Ghetto--I think those are very decent rates, especially considering you are fixed for the term. You do not have to worry about any flutuations in the markert or economy that could possibly take that rate much higher.

 

[Waxman]

I still think you could do a bit better but remember a new loan has costs associated with it that negate some savings and take money out of pocket for closing etc.

Part of my loan is SBA, whose rate (when the debenture is sold) set at a fortuitous time and ended up a bit over 4% fixed.

My 5.95% on main loan is fixed and was done with 1 phone call and a signature; no cost, just a modification. Only saves a little each month but it all helps.

 

[Red Baron]

Just refi'd my house at 3.75% for 10 years. My car wash is at 6.2% and I'm shopping a better deal.

Most I've talked to want me to bring all my accounts to them, which is a good bit of work transferring merchant accounts and such.

 

[Earl Weiss]

My last loanm I went to a bank that was soliciting my business. Asked for a line of credit instead of a straight loan and they refused and quoted 7%. After 3 months they made up excuses why they couldn't make the loan so I went to someone else I knew and the loan was closed in 30 days as a line of credit at prime plus 2. At the time prime was 5%. Now it's set at 3%. Sent the first bank a letter thanking them for being screwups.

A little less than 2 years later bank #1 is taken over by the FDIC. Unfortuneately I still had a letter of credit thru them. Guess what. The FDIC repudiates letters of credit whn it takes over a bank. The bank that took them over re issued the letter of credit but it was still a hassle.

You may want to consider a line of credit if you can stomach the variable rate. That way, as you pay down principal you have a source of ready funds.

 

[washme1]

As I mentioned in a previous post, I had 6.8% on my business loan. I went to another bank and mortgaged my home for about 40% of value at 3.875% for 15 years to pay off the business loan. The bank which had the business loan offered to lower the rate to 5% which I did not do. The payment for the 15 yr mortgage (incl an extra $10,000) was less than the payment for the 25 year business loan.

As Bill Pitzer said, this worked well for me but he would not recommend it for most operators. In my case, I had no home mortgage and it made sense. My intention is to pre-pay as quickly as possible to be debt free.

 

[dogwasher]

As I mentioned in a previous post, I had 6.8% on my business loan. I went to another bank and mortgaged my home for about 40% of value at 3.875% for 15 years to pay off the business loan. The bank which had the business loan offered to lower the rate to 5% which I did not do. The payment for the 15 yr mortgage (incl an extra $10,000) was less than the payment for the 25 year business loan.

As Bill Pitzer said, this worked well for me but he would not recommend it for most operators. In my case, I had no home mortgage and it made sense. My intention is to pre-pay as quickly as possible to be debt free.

Thanks Im looking into this option now