Refinance a Commercial Mortgage | Are You Ready to Refinance Your Commercial Mortgage?
Refinancing is one of the best strategies for keeping money in your pocket and paying back your investment principal faster. While traditionally people refinance a commercial mortgage to save money on interest rates, refinancing can also be used to:
- Increase the term of your loan.
- Decrease the term of your loan.
- Change your lender or alter your agreement.
There are many different ways to refinance commercial mortgages and reasons to do so, beyond changes in loan interest nationwide. Indeed, you improve your ROI and decrease your interest rate dramatically if you can simply refinance a loan from 30 years to 15 years, even if the interest rates do not change. But the primary reason that people refinance is because interest rates around the country have gone down.
How Much is Enough
It’s generally recommended that your interest rate decrease by at least 2% if you’re planning on refinancing. That’s because the fees to refinance can cut into your profits to such a degree that anything less than 2% may take a decade or more to earn back. Some experts say that 1% is enough to refinance.
More Than the Federal Interest Rate
Keep in mind that you may be able to decrease an interest rate by more than 1% simply by improving your credit and showing a strong property history. If you were forced to take a higher rate due to difficulties with any of the paperwork or history you used to purchase the property, you may want to apply to find out how much you can save by refinancing and whether or not the drop is enough to warrant it.
At CRE Lender, we can handle the refinancing process for you. Our role is to connect you to decision makers with different institutions so that you can shop around and decide which loan is right for you.
If you have a high interest loan and believe your situation has changed enough that you may be entitled to a lower interest rate, sign up with CRE Lender today. We’ll compare your situation to our past closed loans that have come before you and let you know if you’re ready to refinance your commercial mortgage today. Sign up now.
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