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Loan Mall USA – Real Estate Loans

Posted by on Mar 10, 2016 in Dream House, Loans Advice, Real Estate | Comments Off on Loan Mall USA – Real Estate Loans

Whether you are an individual and need a refinance or you represent business entity and planning to buy a commercial real estate, you will have to get familiar with real estate loans.

There’s a big money in the game in both cases, high risks and lots of legislative rules to cope with, so even if you let some experienced lawyer to handle all the procedures, it’s wise to at least get to know the basic rules and options.

Most of the aspects of the matter you might face when applying for residential or commercial real estate loans will be thoroughly described here on “Loan Mall USA” blog.

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Commercial real estate loans are basically mortgage loans, with the difference that they are secured by commercial property that is used solely for a business reason, instead of residential property like regular real estate loans, and used to finance commercial real estate. Commercial real estate is real estate meant to produce income and be used for business purposes.

Residential loans or individual loans are mortgages made to individual borrowers and include the whole different system of loan repayment schedules.

These two real estate loans differ not only in their purpose but in many other aspects, especially in repayment schedules.

“Loan Mall USA” provides all required information and explanations on this subject.

If the entity doesn’t have a credit history, there’s a chance that lender will ask for the guarantee of the loan, individuals with the financial track record from whom lender can recover. If this kind of guarantee is not required, the loan is referred as “non-recourse loan”. Both cases include certain administrative steps you will find here thoroughly explained.

home-mortgage-loanAlso, loan repayments schedules are different with these two types of real estate loans. The debt of the residential mortgage is repaid via regular payments over a certain settled period of time, usually it’s 30 years. Longer, so as shorter amortization periods are possible, but that depends on the amount of monthly payments and total interest costs.

Commercial real estate loan is usually repaid over the period of five years to 10 or 20 years, but amortization period is longer since it includes so-called “balloon” payment. This obligates an investor to pay the entire residual loan at once after a certain period of time.

When it comes to payment, there are also numerous things to worry about. Loan to value ratio is calculated differently for residential and commercial loans. Residential appraiser values property mainly based on other sold comparables. Commercial property is valued primarily based on the income it produces.

Also, not even the mere process of repayment can be done outside settled rules. There are four different types of penalties investor could end up paying just for paying off loan earlier. The most common one is prepayment penalty, but some cases involve defeasance, lockout, interest and guarantee.

All these options and terms are determined in the real estate loan documents and contracts and usually are adaptable and can be negotiated. Nevertheless, terms of the contracts require a solid understanding of underlying economic and legislative procedures and articles on this blog will provide you with the most accurate, but still easy to comprehend explanations.

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Posted by on Mar 10, 2016 in Dream House, Loans Advice, Real Estate | Comments Off on BENEFITS AND POSITIVE ASPECTS OF REAL ESTATE LOANS


           We know that houses are something we all need, and we try our best to collect enough money to buy one, the same one of which we have always dreamed. However, reality is usually a bit harsh, and the home of your dreams may be too expensive for your buying power, as is the case with most people. We work all our lives, sometimes even two jobs, but it is very hard for an ordinary 9-5 worker to gather enough cash and buy a nice house, or any other type of real estate. Unless your parents are millionaires or you’ve just won a huge jackpot at a casino – chances are that you will have to loan some money to be able to buy a place for your family.

            People loan money from different sources, and sometimes they ask their friends or colleagues for this favor, but usually they have to go to a bank or a credit union, and file for a loan. Real estate loans are created with the intention of helping people achieve their dreams, i.e. owning a real estate. They increase the buying power of the applicant and this makes him or her capable of depositing large sums of money at once, which they usually wouldn’t be able. In case you ever need any advice about this topic your should hire our Brentwood real estate team since they are more than capable of dealing with any kind of request.


Real estate loans have several benefits over other kinds of loans, and those benefits are mostly related to the amount which can be borrowed and the duration of the time in which the money has to be returned (to the bank or some other financial institution, depending on the place in which your took the loan). When it comes to amounts – real estate loans are taken for relatively larger sums, and they therefore require more paperwork and slightly higher level of control and security checks. Since the amounts are high – so are the interests, but the good thing about long term loans is that they make monthly installments pretty low, simply because the total amount is divided between larger number of months. This is a very good solution for people who cannot afford high monthly payments, and this arrangement allows them to live their lives normally.

               Another aspect of real estate loans is the duration, which is already partially covered in the previous passage, so we can say that these loans are taken for longer periods, since there is a large amount of money in question. When it comes to mortgage loans, which are the typical representative of real estate loans, usual arrangement is for 30 years, although some people decide to go for the 15-year plan. Interests can be fixed or floating, depending on the agreement between the bank and the applicant, but the whole process is relatively simple and can be done very quickly. That means that your dream house can be yours in matter of days, if you successfully apply for a real estate loan.

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