There were approximately 200 car wash loans done SBA 7(a) and about 80 done 504 done Fiscal year 2011 (Oct 1, 2010 - Sept 30, 2011). These were loans done for standalone car washes. It's definitely picked up a lot more the past eight months since that report was done. I can't speak for conventional loans though.
After reading this and having a year and half under our belt, my wife and I went back to our local bank where we have our business loan to discuss rates and what they could do for us. The original loan was 7.75% for 20 years with a 5 year adjustable interest.
They gave us two options, modifying the original business loan down to 4.5% with about $800 fees for 15 years and a 5 year adjustable or take out a Home Equity loan for 2.875% fixed for 15 years. The latter would save us appr. $250.00 a month and 3.5 years off the original loan...
Either way we go its money in the bank...Thanks for bringing this to the forum and letting us know something like this is possible. I didn't know banks would modify a loan to save on interest. But I did plan on exploring a home equity loan now that we're established....
Thanks for the tip! But we already pay extra on our current loan. If we continue to make our current payment, the new 15 yr loan will be paid off in 7 yrs...But we will have the flexibility of dropping back to the lower payment if we have a bad month...
Do you see any negatives in doing a Home Equity loan? I can't think of any? A fixed 2.875% looks very inviting!
The issue is that with home equity you are gambling your home's equity and a place to live. IMO if there is no way that you can't make this payment, then that is the way I'd go. The other, a 5 year adjustable, is a blank check to the bank. Personally, I don't like blank checks.
Wasn't there a post not long ago where the renewable note was not renewed. the bank called the loan and it left the owner in a real bind?
That is a low long term fixed rate. There's no way I can see rates staying that low for that long. As much as i hate mortgaging the residence I'd be tempted to do that. I guess most of us pledge our personal assets when we sign on the line anyway.
You guys are lucky( or maybe just smarter than me) . I'm stuck in a Libor swap loan at 7.75%. To refinance would cost me almost 20% of the principal balance in prepayment penalties.
The good news is I have 3 years and 8 months left until my last payment.