Get the lowest interest rates on commercial mortgage refinancing options
Now that rates are at an all time low, there is a lot of information about interest rates being around 4% and suggestions for everyone who can refinance, should refinance their home. However, the question is can a commercial mortgage loan get refinanced at a low interest rate? The answer is yes, there are many corporations that own their own facilities that are looking to do a commercial mortgage refinance for many different reasons and luckily for them, there are many different options available that will allow a borrower to refinance a commercial mortgage loan and get a low interest rate at the same time.
When doing a commercial mortgage refinance the rates will not be as low as a conventional mortgage. Rates on a commercial mortgage loan are about 2% points higher than a conventional home loan. Most of the time these savings are still a very good option for people that are looking to refinance a commercial mortgage loan because they have an existing lien on their property.
Because of the economic conditions banks have frozen lines of credit offered to some companies, because of this there are many companies that have had to turn to refinancing their commercial mortgage loans for working capital. Many of these businesses are profitable businesses but they rely on these lines of credit for working capital. They use this working capital to order inventory, purchase equipment, pay roll and other things as well. With these lines of credit no longer existent many of these companies are turning to a commercial mortgage refinance to get some cash out of their properties. With this cash they are able to have some working capital and get a capital injection into their business, which can be very helpful in times of need.
It is not as easy for a company to refinance a commercial mortgage loan as it used be. Not only have residential property values fallen but commercial property values have also dropped off significantly. Many of these properties are not generating the same amount of income that they used to and there are also less buyers that are in the market to purchase. This hurts the property owners by creating them to be over leveraged and they will not be able to refinance their commercial mortgage loan.
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