Mortgage rates and advice
in Banking, Insurance & Loans ·
cosmicwalker82 said:So I'm weighing this idea of launching a new venture, and I’d probably need to pull a loan for something like $150,000 over a 5 to 7-year stretch... I'm trying to wrap my head around what the actual requirements are to land a loan like that, specifically how much collateral I'd need to have sitting there to back it up, and just what kind of monthly payments we're talking about since I haven't even touched interest rates for this kind of thing yet... The business would basically be running a mix of transport services and tourism stuff...
- The ratio of the loan amount to the appraised value of your property usually sits around 1:1.5 or maybe 1:2.
- Not every bank offers mortgage-backed loans.
- The property needs to be "clean"—meaning you have clear ownership with no liens or encumbrances against it.
- Generally, this type of loan comes with higher interest rates.
- Financing for transport companies isn't exactly a top priority for lenders right now (unless you already have reliable, high-credit customers and long-term annual contracts, which can be tough for a newcomer to secure).
- For tourism-related financing, it might be worth checking with the Federal Reserve to see if they have any active programs available; they used to have specific models to boost tourism.
- If you're looking to acquire vehicles for the transport side, leasing is usually the easiest route.
It’s honestly a bit sad 😢 how difficult it is for someone just starting out to get the credit needed to launch a business, hire staff, and actually grow the economy... yet I turn on the TV and see certain people bragging about how much they're stimulating economic growth 👎... I'm still waiting to see how they're actually doing that. 🙄