The best way to refinance your commercial mortgage is to be prepared for the process and the long-term impact it can have. There are a few considerations you should make when it comes to refinancing. Ultimately, you want to make sure that you are making the best decision not just for now, but well into the future. Here are some things you should consider:
How will refinancing impact your financial situation?
Refinancing can have an influence how much interest you will pay over a period of time. Consider your long-term business plan before you even consider going down this path. Make sure that you understand how refinancing will influence repayment and how that impacts your bottom line each month. Remember, this choice will not just affect your situation now, but for years to come.
How is your current credit?
Credit can change over time. Perhaps your credit has changed considerably since you first took out the loan for the property. While bad credit doesn’t mean you can’t get refinanced, it can mean that you will pay a much higher interest rate. Make sure it’s worth it.
Check out the property’s current value
You may be surprised at how a property’s value can change over time. If your property has depreciated, you may have to come up with more money to gain enough equity to qualify for refinancing. This may or may not be a sound financial move.
Make sure you have a knowledgeable commercial lender
No matter if you choose to go with an established commercial lender or your local credit union–knowledge is everything. The lender you choose should be well-versed in refinancing and lending specifically for commercial real estate. Be prepared to ask some questions about their history with this type of mortgage situation and make sure that their answers are thorough.
Want to learn more about the best way to refinance your commercial mortgage? We have years of experience helping people navigate the murky waters of real estate. Contact one of the attorneys atto help you understand the right solution for your property. We offer free initial consultations and flat-fee pricing!