The specialty of commercial loan refinancing involves some unique practices that not every residential loan officer has performed before. For that reason, it’s important to talk to a commercial loan officer who is experienced in making such loans. There are many pitfalls to writing these types of mortgages that the typical residential loan officer will not be aware of. Save yourself some headache and work with people who do commercial loan refinancing as their primary loan type.
Who needs commercial loan refinancing?
A lot of commercial real estate mortgage holders may be considering refinancing. Perhaps you are a private investor who bought a commercial property for your investment portfolio. I know one successful businessman who needed to move his business. Rather than leasing office space, he decided to create an investment trust and buy a piece of commercial property in the trust. When his business outgrew the space, he had a choice: sell it, or lease it out. Leasing it out with a positive monthly cash flow required getting commercial loan refinancing.
When do you need to refinance your commercial loan?
There are many situations that might make refinancing your commercial loan advantageous, but the most common is simply cash flow. Perhaps you took out your commercial loan when rates were higher and want to take advantage of low commercial loan interest rates. In the past, this may have been a luxury, but with a tightening economy, perhaps the extra cash flow from refinancing your commercial mortgage is a necessity.
In any case, if you need to get a better rate on your commercial loan, we suggest talking to us first…and last. We’ll help you find commercial loan refinancing that matches your business and your needs perfectly.
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