Time to Refinance ?

[ted mcmeekin]

Our wash is holding it's own albeit we have had some tight months.
While I was not looking forwrded to it, I called bank to explore some options on our two loans (original wash plus expansion). They suggested going to a blended rate which is the equivalent of of our current rates and extending term. I did not want to get the term out very far (10 and 15 yr rates are the same). That rate is 6.6 but my guy thinks he can do better in next two weeks. I was surprised at their offer and probably will go ahead after he gives me revised rate (turns out he was raised in this town and has family who appreciate the service we have provided the community)--nice to have a banker in our corner. Since we will be in control we can pay off on same term as orginal or hopefully sooner but this gives us a bad month buffer if needed. We will be out closing costs--expected to be less than 1500. (they will validate past appraisal rather than order a new one).

I bring this up in case anyone else might want a buffer for future tight months. We don't have to do this which gives us some leverage with bank--it is more peace of mind for uncertain economy.

Ted

 

[Waxman]

I think it sounds great.

I'm fully in favor of getting the best deals possible on the largest line items on the expense section of the p&l. Banks should work hard for business owners like us. This includes taking a calculated risk to refinance, buy an existing loan or even (eeek!) lend for expansions of carwash-related businesses.

After all, we, as business owners and operators stick our neck out, taking a chance on a business in which we are expected to offer a very high level of service and quality and accountability.

I think small entrepreneurship is currently a very important section of our economy and, as such, banks should cooperate and partner up with us, so to speak.

 

[pitzerwm]

If the interest is essentially the same for 15, I'd go with the longer term, then pay off early if possible. Giving yourself the best flexibility.

 

[Earl Weiss]

Doing some financing and the Bank agreed to do a secured line of credit instead of a mortgage. I will pay down as if I am paying a mtge with regular payments, but it will also give easy future access to capital if need be.