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Repaying capacity, is therefore, worked out as a residual after meeting the requirements of the family consumption and payment of other dues, debts and repayments.

In case of non-liquidating or partially liquidating loans, the resource acquired with the funds are not directly consumer or are consumed over a number of years.

A loan may be productive but still it may not generate sufficient income to leave funds sufficient enough to repay the loan.

Many commercial property mortgages have balloons, which means they must be refinanced periodically.

Self-liquidating financing works like a traditional 30-year residential mortgage: If you make all of your payments, the loan eventually is paid off.

The savings from not having to pay application fees, appraisal fees and closing costs to periodically refinance are obvious, but self-liquidating financing saves you money in a second way.

When you have a mortgage with a balloon payment, you end up paying more interest.




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