Refinancing for Improvement
The reasons to refinance are on the minds of many churches right now. Refinancing can be the answer to several problems at one time.
Reasons to refinance your church loan are easy to find right now. The main reason for this surge is due to climbing church loan interest rates. We have previously talked about the fact that we are encouraging every church that has a mortgage with an interest rate higher than 5% or has a loan coming due in 3 years or less regardless of the interest rates to call us right away to get their refinancing process started.
But we have not addressed the churches that may have impending renovation projects. Has your church recently evaluated the needs of your building?
- Is it time to replace your roof?
- Do you want to install a new sound system in your sanctuary?
It is also time to handle the projects that may require refinancing before rates climb too high to make these changes affordable.
Refinancing: Griffin Capital’s Deal
To expand on this point, Griffin Capital received a request for a small loan from an old church. In the beginning of the winter season, all of the church’s furnaces broke, and they did not have the cash to fix them. They needed $40,000 for the repair. As it ended up, the loan on their building was at a higher interest rate, so we gave them a loan to make the necessary repairs and refinance their property. We worked out the numbers and even with increasing their loan by enough to pay for the new furnaces, the refinance lowered their payment enough to cover the cost of the project. And, because they were already doing the repairs, and their monthly payments were reduced, the church decided to put in an HVAC system. Now the congregation will enjoy the comfort of their church all year round.
If your church building needs some TLC or upgrades, please call today to get started with Griffin Church Loans.