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A Broker’s Guide to Refinancing Commercial Mortgages

Commercial Mortgage
Posted on 
July 30, 2020

As a commercial mortgage broker, one of the most common scenarios you’ll see is a borrower looking to refinance their property. To assist them, you need to know what a lender will need to evaluate a scenario, what the borrower’s financial situation is, and what they’re planning to do with the funds, among other things.

Below is a selection of some of our blogs dedicated to helping mortgage brokers learn more about refinancing commercial properties so that you can help your clients obtain the financing they need and earn more in the process.

How to Refinance Your Borrower’s Commercial Mortgage

For commercial property owners, refinancing can be an important step in the process of achieving their goals. It can pay off debts, free up cash for inventory or property improvements or consolidate debts into one monthly payment. As a broker, it’s your job to help them navigate the commercial lending process and secure the financing they need. Click here to learn more about how to refinance your borrower’s commercial mortgage.

Four Common Reasons Borrowers Refinance a Commercial Property

There are many factors that a small-balance commercial mortgage lender takes into account when reviewing a borrower’s request to refinance their property. One of the most important pieces of information your lender will need to make their decision is the use of funds. Knowing how your borrower plans to use the money allows the small-balance commercial lender to determine if the mortgage makes sense for all parties. Click here to learn more about some common reasons your borrower might be looking to refinance.

Refinancing a Ballooning Commercial Mortgage

For many commercial mortgage borrowers, refinancing a ballooning note can be a challenge. Once the lender calls the note due, they have a limited amount of time to provide the funds to pay off the loan. In this situation, a non-conforming commercial mortgage lender that offers fixed and fully-amortizing programs could be a great alternative for your borrowers. Click here to read about why a fixed and fully-amortizing solution might be better for your borrowers.

Questions to Ask Commercial Borrowers Seeking to Refinance

If you’re a broker considering closing commercial mortgages, keep this in mind: There are always small business owners looking to refinance their properties. When you begin working as a commercial mortgage broker, these borrowers will make up a significant portion of your clients, so it’s important to know the questions you need to ask them in order to get a sense of the deal and get them the mortgage they need. Click here to read about some of the most important questions every broker should ask borrowers seeking a commercial refinance.


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