It is no surprise that God calls His people to steward their resources faithfully. 1 Corinthians 4:2 states, “Moreover, it is required of stewards that they be found trustworthy.” The Church is no exception here; in fact, a church’s financial behavior should serve as a positive example to the community.
However, churches with debt often find themselves spending more than necessary each month, leaving less money for ministry purposes. A reasonable solution here is to refinance the debt with a trusted church lender. Below we’ve listed a few scenarios where it would be wise to seek refinancing for your church mortgage loan.
1. Consider refinancing when the church has a mortgage with a balloon payment in the near future.
2. Consider refinancing when interest rates have decreased.
3. Consider refinancing to shorten the amortization term.
4. Consider refinancing to lengthen a fixed interest rate term.
An important next step in deciding to refinance your mortgage is to determine how long it will take to recoup closing costs. A simple way to do this is to divide the closing cost by the decrease in monthly payments. For example, if closing costs are $5,000 and the church saves $250/month, $5,000/$250 = it will take 20 months to recoup closing costs.
If you have any questions about refinancing your mortgage, feel free to reach out to our team at (844) 273-7713. We would be honored to walk through the process further with you.
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