Church Loan Refinance Saves $180,000 in Interest
We recently closed a loan for a Baptist church in NJ that sought us out to help them refinance the 6.5% interest rate that they were locked into. The well-established church had been active in their community for more than 60 years and had a long history of generous giving to help the needy. Their high bond interest rate was taking a toll on their ability to assist as they had in the past.
In addition to refinancing their interest rate, the church wanted to take some cash out to make improvements to their property. The money that they had been using to pay their loan was so large, that their building had been neglected. They had approached their current lender and were declined for a new loan because they did not show the ability to service the new loan amount according to the underwriters standards even though they have been making a larger payment at a higher interest rate.
That is when they found Griffin Church Loans. We reviewed the financial statements for the church and were able to demonstrate to underwriting that their generosity was discretionary and should not be counted against them. The loan was approved with a 10 year fixed term with a 25 year amortization at 4.25% saving the church $180,000 in interest payments over the next 10 years.
With interest rates climbing, the church made the right choice to refinance. If your church is locked into a high interest rate or has a loan coming due in the next 3 years, then it is time to start the process of refinancing before rates climb higher. Great rates are still available and in many markets across the country they are as low as 3.75% fixed for financially strong churches. Call us today to get started or submit your request here.