When thinking of a Mortgage Refinance for a commercial property, you may want to consider becoming familiar with the terminology to help understand how the process will play out. This will increase your knowledge and help you prepare for what to expect.
Without some familiarity pertaining to a Mortgage Refinance it could be difficult to understand where to start. Without some experience in financing, whether it's on an initial loan or a Residential Loan, these terms may seem like foreign language or somewhat silly for such a serious matter. A few examples would be: Arm, Balloon, Bridge Loans, Mezzanine Loans, Conduit or CMBS Loans etc.
If you think back to when you applied for your original Commercial Mortgage Finance, you will remember specific terminology some what different than that of Mortgage Refinance. You had to think about the price of the commercial property, the time it will take to secure a loan this size, it is possible for the amount of time specified on the contract to run out before you get funded, protection from default on such a large loan, not to mention collateral, down payment, the lenders closing costs and so on, not too unlike a mortgage on a house.
Now that you have experience, when learning the thought process behind Mortgage Refinance in the next paragraph, you will see the difference in thought from your original loan. The most prominent reasons people look at Mortgage Refinance are because of taxes, facing a ballooning loan or to help reduce monthly payments and interest. And it may also reduce the life of the loan.
You had to make sure you can handle such an obligation by speaking to your Financial Advisor and your Accountant about how long your finances could carry the loan if things don't go as planned before ever thinking of moving onto Mortgage Refinance.
It is very important to find a good Broker that offers a variety of innovative loan programs for your specific need. So now, it is time to look at Mortgage Refinance. Things may become very difficult on a loan for a commercial property.
The cost to complete a Mortgage Refinance for a commercial property can turn out to be quite high if you were under the impression it would be less than an original loan. An appraisal can run between $2,000 - $5,000, Title between $800 - $2,000, Phase One Environmental Report around $2,000 and lender processing fees around $1,000.
It is very important to look at may closing costs will affect the equity you have been building over the years. Two of the biggest reasons people look at Loan Refinance, are to get a lower interest rate than they currently have, this means lower monthly mortgage payments (lower payment means more cash in your pocket) and the second reason people refinance their mortgage is to "cash out" some of the equity they have built over time and invest it in a new project. Remember that knowledge is power, so stay knowledgeable by reading and researching your topic. - 15432
Without some familiarity pertaining to a Mortgage Refinance it could be difficult to understand where to start. Without some experience in financing, whether it's on an initial loan or a Residential Loan, these terms may seem like foreign language or somewhat silly for such a serious matter. A few examples would be: Arm, Balloon, Bridge Loans, Mezzanine Loans, Conduit or CMBS Loans etc.
If you think back to when you applied for your original Commercial Mortgage Finance, you will remember specific terminology some what different than that of Mortgage Refinance. You had to think about the price of the commercial property, the time it will take to secure a loan this size, it is possible for the amount of time specified on the contract to run out before you get funded, protection from default on such a large loan, not to mention collateral, down payment, the lenders closing costs and so on, not too unlike a mortgage on a house.
Now that you have experience, when learning the thought process behind Mortgage Refinance in the next paragraph, you will see the difference in thought from your original loan. The most prominent reasons people look at Mortgage Refinance are because of taxes, facing a ballooning loan or to help reduce monthly payments and interest. And it may also reduce the life of the loan.
You had to make sure you can handle such an obligation by speaking to your Financial Advisor and your Accountant about how long your finances could carry the loan if things don't go as planned before ever thinking of moving onto Mortgage Refinance.
It is very important to find a good Broker that offers a variety of innovative loan programs for your specific need. So now, it is time to look at Mortgage Refinance. Things may become very difficult on a loan for a commercial property.
The cost to complete a Mortgage Refinance for a commercial property can turn out to be quite high if you were under the impression it would be less than an original loan. An appraisal can run between $2,000 - $5,000, Title between $800 - $2,000, Phase One Environmental Report around $2,000 and lender processing fees around $1,000.
It is very important to look at may closing costs will affect the equity you have been building over the years. Two of the biggest reasons people look at Loan Refinance, are to get a lower interest rate than they currently have, this means lower monthly mortgage payments (lower payment means more cash in your pocket) and the second reason people refinance their mortgage is to "cash out" some of the equity they have built over time and invest it in a new project. Remember that knowledge is power, so stay knowledgeable by reading and researching your topic. - 15432
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This article is brought to you by the experts at EFD Commercial Investments Inc. For more free information about loan refinance, visit their Mortgage Refinance page.
