Church Interest Rate
On 12/14/2017, the government raised interest rates again. This marks the third time in 2017. We have been warning churches all year to refinance before church interest rates climb more. In addition, it is forecasted that in 2018, the interest rate will be raised 3 more times. This makes it imperative for any church that will require financing in the next few years to start the process now. This is the only way to lock in lower interest rates.
How does this affect church mortgages? It means that church interest rates attached to new loans will be higher. We don’t want churches to lose money paying extra interest. They can prevent the problem by being proactive now.
Church Interest Rate- Predict Your Needs by Evaluating the Following:
- Is the current mortgage ballooning within the next three years? Church loans are commercial loans and need refinancing before their term ends. Usually, they have a 5-year fixed church interest rate. Griffin Capital Funding offers loans with as high as 30 year fixed rates, so we can take the burden of refinancing every 5 years off your shoulders and lock you into lower interest rates in the process.
- Do you currently have a high church interest rate? If you do not refinance that rate now, then you may not be able to lower it significantly in order to save money. Your church may even end up with a higher interest rate than it has now.
- Does your church building need any repairs or have deferred maintenance? It could cost your church more if you try to raise funds and come up short. Repairs that are delayed can become a bigger problem down the road. It would be more efficient to seek financing now with a lower church interest rate and then raise the funds to pay the debt off.
- Is your church growing? If you will need a new building or expansion, then the rising church interest rates could drive your price up. Higher interest could result in an increased monthly payment.
We urge all churches to evaluate their needs as they prepare for 2018. If you have a question about when the time would be right for your church to seek financing, then call us at 800-710-6762. Griffin Capital Funding operates nationwide. It is our mission to place every church that we help into a better financial position than when they came to us. We have loan programs for churches of all sizes and credit backgrounds.