Mortgage Refinance Suggestions
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.
Two of the main reasons people look at Mortgage Refinance, is to help reduce monthly payments and interest, in my opinion one of the most important items to look at is how closing costs will affect the equity you have built over the years.
Long before I became involved in Real Estate, I would hear terms mentioned in regards to Residential and Commercial Loans and Mortgage Refinance options, ARMS, Balloons etc. I was just getting started in this industry and had absolutely no experience in any real estate or financing, so these terms were like a foreign language. I realized very quickly that without thorough knowledge of the terminology it is hard to understand what direction you will go.
Long before you ever dreamed of a Loan 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.
It is very important to look at how closing costs will affect the equity you have been building over the years. Your situation is a little different and you will need to approach the Mortgage Refinance accordingly. You will now start looking at possible Prepayment Penalties, Cash Out Proceeds, and maybe you want to Inject the money you cash out into another property or update your current property, what is the Discounted Cash Flow, Current vs. Proposed Loan to Value Ratio.
Do a simple break even analysis to compare costs of other lenders versus your existing bank. If they know you are looking for a Mortgage Refinance, your current bank may offer to reset the loan.
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?
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 (less 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.
Two of the main reasons people look at Mortgage Refinance, is to help reduce monthly payments and interest, in my opinion one of the most important items to look at is how closing costs will affect the equity you have built over the years.
Long before I became involved in Real Estate, I would hear terms mentioned in regards to Residential and Commercial Loans and Mortgage Refinance options, ARMS, Balloons etc. I was just getting started in this industry and had absolutely no experience in any real estate or financing, so these terms were like a foreign language. I realized very quickly that without thorough knowledge of the terminology it is hard to understand what direction you will go.
Long before you ever dreamed of a Loan 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.
It is very important to look at how closing costs will affect the equity you have been building over the years. Your situation is a little different and you will need to approach the Mortgage Refinance accordingly. You will now start looking at possible Prepayment Penalties, Cash Out Proceeds, and maybe you want to Inject the money you cash out into another property or update your current property, what is the Discounted Cash Flow, Current vs. Proposed Loan to Value Ratio.
Do a simple break even analysis to compare costs of other lenders versus your existing bank. If they know you are looking for a Mortgage Refinance, your current bank may offer to reset the loan.
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?
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 (less 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.
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.
posted by Credit Counseling at
7:59 AM
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