Below I have mentioned some terms to become familiar with to help increase your knowledge and help you become prepared and learn what to expect as you approach a Mortgage Refinance for a commercial property.
Long before I became involved in Commercial Financing and Real Estate Development, I would hear terms mentioned in regards to Residential and Commercial Loans and Mortgage Refinance options, ARMS, Balloons etc. I had absolutely no experience in real estate or how to acquire a mortgage loan, so these terms were like a foreign language to me. I realized very fast without thorough knowledge of the terminology it is hard to figure out what direction you will go.
If you think back to when you applied for your original Commercial Mortgage Finance, you will remember specific terminology slightly 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, closing costs and so on, not too unlike a mortgage on a house.
Long before you ever dreamed of a Mortgage Refinance you had to make sure you can handle such responsibility with the original commercial loan 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 we move on to Mortgage Refinance terms let's recap what terms you had to learn before, such as 1031 Tax Exchange, Environmental Reports, what type of commercial property qualifies for what type of loan, which is a lot for one to learn, the difference between Conduit and Mezzanine Loans, and so on.
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 complicated on a loan for a commercial property.
You will find out some things are a little different when it comes to Mortgage Refinance. The terminology is a little bit different. You start looking at possible Cash Out Proceeds, and maybe you want to inject the money you cash out into another property or use it to remodel the current property, what is the Discounted Cash Flow, Current vs. Proposed, will you have prepayment penalties?
Remember, knowledge is power, stay informed by reading and researching your topic. Be very clear about your reasons for Mortgage Refinance so you won't make mistakes that could cost you more in the long run. - 16003
Long before I became involved in Commercial Financing and Real Estate Development, I would hear terms mentioned in regards to Residential and Commercial Loans and Mortgage Refinance options, ARMS, Balloons etc. I had absolutely no experience in real estate or how to acquire a mortgage loan, so these terms were like a foreign language to me. I realized very fast without thorough knowledge of the terminology it is hard to figure out what direction you will go.
If you think back to when you applied for your original Commercial Mortgage Finance, you will remember specific terminology slightly 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, closing costs and so on, not too unlike a mortgage on a house.
Long before you ever dreamed of a Mortgage Refinance you had to make sure you can handle such responsibility with the original commercial loan 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 we move on to Mortgage Refinance terms let's recap what terms you had to learn before, such as 1031 Tax Exchange, Environmental Reports, what type of commercial property qualifies for what type of loan, which is a lot for one to learn, the difference between Conduit and Mezzanine Loans, and so on.
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 complicated on a loan for a commercial property.
You will find out some things are a little different when it comes to Mortgage Refinance. The terminology is a little bit different. You start looking at possible Cash Out Proceeds, and maybe you want to inject the money you cash out into another property or use it to remodel the current property, what is the Discounted Cash Flow, Current vs. Proposed, will you have prepayment penalties?
Remember, knowledge is power, stay informed by reading and researching your topic. Be very clear about your reasons for Mortgage Refinance so you won't make mistakes that could cost you more in the long run. - 16003
About the Author:
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.
