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Question: How do I re-negotiate loans?
Andviv pointed me in the direction of the topic on re-negotiating loans with banks (thanks a lot) which had some useful information. I didn’t feel like hijacking the topic, so I thought I would start my own here. Currently, I have three major loans that I would be interesting in re-negotiating:
1) My business loan. I used it to purchase my business a couple years ago. The monthly payments are very high, and I’ve paid off 85% of the interest. This seems like the easiest one to renegotiate, since they’ve already said they’re willing to do it in April, when I will have been in business for two years. I wouldn’t so much be re-negotiating the loan; more like refinancing it over a longer period of time. Overall, this would increase my net cashflow by over $500/month.
2) My personal residential loan. I’m not sure there’s much I can do with this, but I thought I would throw it out there. Between my dad’s gift amount and my cash, I was able to put 20% down on the property, so I wouldn’t have to pay PMI. Of course, negotiating the principle balance down would be great, but I don’t think they have an incentive to do so. Slightly more likely would be to pull out the equity to pay off the business loan, which would increase my net cashflow by well over $1000/month. However, since banks are being uber-paranoid about appraisals, I simply can’t pull out enough equity, even with my 750+ credit score.
3) My business van loan. This one is relatively small in the grand scheme of things, but I thought I would just throw it out there for discussion. I doubt there’s anything that can be done about this one.
I don’t see what incentive the banks have to negotiating with me, but if I could do that, it would greatly increase my ability to survive, since business is extremely slow right now. To be frank, unless spring REALLY helps my business more than in past years, doing nothing about these loans is not an option. Fortunately, I have more than enough cash to survival until April (the two-year mark), even if I did zero business, which I highly doubt. I think things will turn around, but re-negotiating at least the first loan would really help.
Any thoughts on the situation?
Thanks for your help.
Andviv pointed me in the direction of the topic on re-negotiating loans with banks (thanks a lot) which had some useful information. I didn’t feel like hijacking the topic, so I thought I would start my own here. Currently, I have three major loans that I would be interesting in re-negotiating:
1) My business loan. I used it to purchase my business a couple years ago. The monthly payments are very high, and I’ve paid off 85% of the interest. This seems like the easiest one to renegotiate, since they’ve already said they’re willing to do it in April, when I will have been in business for two years. I wouldn’t so much be re-negotiating the loan; more like refinancing it over a longer period of time. Overall, this would increase my net cashflow by over $500/month.
2) My personal residential loan. I’m not sure there’s much I can do with this, but I thought I would throw it out there. Between my dad’s gift amount and my cash, I was able to put 20% down on the property, so I wouldn’t have to pay PMI. Of course, negotiating the principle balance down would be great, but I don’t think they have an incentive to do so. Slightly more likely would be to pull out the equity to pay off the business loan, which would increase my net cashflow by well over $1000/month. However, since banks are being uber-paranoid about appraisals, I simply can’t pull out enough equity, even with my 750+ credit score.
3) My business van loan. This one is relatively small in the grand scheme of things, but I thought I would just throw it out there for discussion. I doubt there’s anything that can be done about this one.
I don’t see what incentive the banks have to negotiating with me, but if I could do that, it would greatly increase my ability to survive, since business is extremely slow right now. To be frank, unless spring REALLY helps my business more than in past years, doing nothing about these loans is not an option. Fortunately, I have more than enough cash to survival until April (the two-year mark), even if I did zero business, which I highly doubt. I think things will turn around, but re-negotiating at least the first loan would really help.
Any thoughts on the situation?
Thanks for your help.
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