When churches need capital for building programs they typically review and interview with their local community banks and shop for competitive rates and frankly, it's a smart move to shop rates.
In commercial lending it is easy to recognize that loan rates offered by local community banks and federally regulated banks are as low as they can possibly go, especially since Fed Chairman, Bernake stated those sentiments earlier this week. Given the Fed now has nowhere to go but up, now is a good time to consider a refinance of loans and shop for longer term rates. Churches who are on balloon notes with their local community banks or churches who have adjustable rate mortgages would be wise to look at other long termfixed rate mortgage options or at least consider longer term balloon options.
The Extension Loan Fund has specialized in church lending since 1958 and is not constrained by the lending guidelines of local banks or federal banks. This simply means we have significantly more lattitude to negotiate the terms of loans and even have the ability to customize loans for each particular congregation. In a recent meeting of the Board of Directors, the Loan Fund voted to lower its loan rates and to continue offering a 1/4 percent reduction on any rate when churches volunteer to make payments by electronic transfer of funds. This combination could potentially reduce the loan rate by as much as 2.00% for well qualified churches. With the added benefit of low to no closing costs from the lender and flexibilty of terms and the fact that funds from mortgage payments allow us to expand the Kingdom by assisting more churches, it makes sense to shop the Extension Loan Fund for a note that could save your church money. The Loan Fund currently has millions of dollars to lend to churches who are members of the International Pentecostal Holiness Church and would like the opportunity to evaluate your congregations needs and possibly provide some solutions to assist your church.
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