It's always a good idea to refinance negative amortization loan as soon as you are in a position to do so. Negative amortization means that you are losing money every month you pay your loan. While the low payments may be an attractive option for new business owners, negative amortization refinancing is always a better option for you.

Some of the best reasons to re-fi a negative amortization mortgage are:

1. You want to earn equity in your property. When you make payments on a negative amortization loan, you actually increase the amount of money you own. Negative amortization refinancing information will show that it's better to gain equity in your property.

2. You want a better interest rate. Interest rates are constantly changing and in some cases, you may be able to get a better interest rate when you re-fi a negative amortization loan, especially if you have improved your credit score.

3. You are in a better financial position. Many business owners start with a negative amortization loan because they don't have the money or cash flow to finance a better type of loan. Once the business is off the ground, it's possible to get negative amortization loan refinancing.

Action Steps
The best contacts and resources to help you get it done

Use commercial loan specialists for negative amortization mortgage refinancing

Now that you're ready to refinance your commercial mortgage, it's a good time to companies that specialize in working with business owners. These companies may better understand your needs and make good recommendations based on your situation.

I recommend: Winter & Company specializes in commercial financing and can help you refinance your mortgage depending on the type of property. Commercial Loan Specialist also helps with commercial mortgages, even when banks turn you down.

Find negative amortization refinancing for a jumbo loan

Expensive properties have special requirements for their loans. If you have a property that exceeds certain amounts, then you need to talk to a bank that handles jumbo mortgages.

I recommend: Use MortgageLoan.com to compare the rates of different mortgage companies in your area. Alternatively, you may want to apply directly to a bank such as Nationwide in order to secure a jumbo mortgage.

Talk to a negative amortization refinancing provider about fixed rate mortgages

Fixed rate mortgages are the best option for many business owners. Your mortgage payment does not change over time, which makes it easier to budget.

I recommend: Many banks offer fixed rate mortgage options for commercial properties. Talk to an account representative at Wells Fargo or Chase to start an application.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Make sure that you read the fine print when you compare negative amortization refinancing providers. Each bank may have different fees associated with the loan and you want to be sure that you get the best deal. You should understand all of your obligations up front.