Refinancing Your Church Mortgage
It’s important that you feel secure with your churches finances. Though each situation is different, there are times you may require refinancing on your church loan.
Loans can come either fully amortized or interest-only. When the loan is amortized, after you make your final payment, the loan is entirely paid off. Balloon payments arise on interest-only loans. While the monthly payment is much lower, you never pay off any principal.
Churches have trusted BDM Mortgage Services for over 25 years to refinance their loans. We have worked with Churches that have had an existing loan with a bank which had a five year term, the church had made all 60 monthly payments on time, and yet the bank would not refinance their balloon payment. Even when the bank does refinance the balloon payment, your church is often faced with having to refinance every 3, 5 or 7 years – including having to pay the cost involved all over again each and every time.
At BDM Mortgage Services, we can arrange a fully amortized church loan at a reasonable rate so there will be no balloon payment that needs to be refinanced in the future. It can be a one and done process.
What Makes BDM Different
At BDM Mortgage Services our church loans are based primarily on the equity in the church’s real estate. Naturally other items are considered, such as income, but the primary factor is the equity. Normally if there is sufficient equity in the church’s real estate we can arrange the church loan.
What makes BDM Mortgage Services different from institutional lenders is our loans to churches are funded by private party lenders. These lenders can be individuals, pension funds, IRAs and profit sharing trusts. This makes it possible for us to arrange a loan that a bank either can’t or will choose not to fund. In addition, the process takes weeks, not months.
We don’t require personal guarantees from any members of the church. We don’t perform credit checks on any of the members and the loan never shows up on any person’s credit report. We don’t require a resume from the pastor. There is no prepayment penalty involved on our church loans and the interest rate is fixed for the term of the loan. There are no surprises down the line regarding the interest rate or the monthly payments as both remain the same throughout the term of the loan.