Commercial Mortgage Refinance
Commercial mortgage refinance rates are down. With the economy on the time is ripe for collateralizing real estate and freeing up capital to make additional real estate or other investments. If you have an older commercial mortgage, refinancing now should be on your front burner. Most folks with access to traditional bank mortgages have refinanced both their commercial and residential mortgages in the past months.
If you are looking for a commercial mortgage refinance now, you are probably looking to collateralize a real estate property in order to free up capital for another purpose. Chances are, traditional banks are not able to refinance your commercial mortgage because either you or your property don't meet banking criteria.
If that is the case, consider looking into hard money commercial mortgage refinance options. Hard money lenders have more flexible lending criteria when it comes to the nature of the property and financial history of the individual seeking the commercial mortgage refinance. They are able to offer more cash-out on a commercial mortgage refinance than a traditional bank can as well.
Hard money commercial mortgage refinance will cost more than traditional bank refinancing options. Rates start around 11% +4pts and can go as high as 20%+ and 8, 10 or more points. The points are generally wrapped into a commercial mortgage refinance loan, so there are fewer upfront costs. Prepayment penalties on commercial mortgage refinance loans range from none to very severe, so be sure to ask about them before agreeing to any contract.
If you have not obtained a commercial mortgage refinance in the past, consider contacting brokers in your area to ask about rates, options, etc. If you choose to work with a broker on your commercial mortgage refinance, expect to pay the broker between 2 and 4 points for his/her services. If you work with a direct commercial mortgage refinance lender, you will save that money, but you may not have easy access to assistance in filling out the application to your best advantage or access to other lenders who may be better suited to your deal. Proceed with caution. Most who purport to be direct lenders are actually serving as brokers and will add points to your costs. Be tenacious in determining whether you are speaking with a company that is prepared to fund your loan directly, rather than one that will pass it on to another company, thereby increasing your costs.
