Managing Real Estate Loans: The Benefits of Diversification and Amortization

8. Diversify and amortize loans

“Diversifying your real estate loans can help spread the risk and make the loan portfolio less vulnerable to rising interest rates,” advises Brundia. The disadvantage of this financing method is that you are tied to the lender more than necessary.

If your financial situation allows it, you should also pay off loans. Depending on the model and contract, voluntary amortization may be possible. You should ask your provider about this. More importantly, the lower your mortgage debt is, the less mortgage interest you have to pay and the better your credit rating. And the latter is particularly helpful when a mortgage needs to be renewed.