One of the main reasons for getting a commercial equity mortgage loan is to obtain a line of credit. A line of credit is an amount of money made available for you to borrow from whenever you wish. When you get a line of credit with a commercial equity mortgage loan, what you're actually doing is getting a new ‘mortgage-loan’ on your commercial real estate for a particular amount. For example, instead of taking that amount, say $500,000 out of your commercial real estate in cash, you leave that cash in, but make it available as a line of credit.
Of course, this line of credit is accessible whenever you need it, paying interest only on the amount you use, and only when you are using the line of credit. If you took the $500,000 out in cash, you would have to pay interest on that full $500,000 until you completely paid it back.
So a line of credit is a money-saving option, as opposed to getting a full ‘cash out’ with a commercial equity mortgage loan, especially if you don't need to use the entire amount of equity in your commercial real estate all at once.
If you get a line of credit by getting a commercial equity loan, this line of credit can act as a safety blanket for you in case of financial emergencies. Also, you can get a line of credit with a commercial equity loan far cheaper than you can get a regular line of credit from a bank.
Visit http://www.donnasmortgages.com/ for more information on our services or to contact me.