Commercial Loan Refinancing

Commercial Loan Refinancing and commercial mortgages are similar to traditional residential mortgages, but they use a commercial building for collateral rather than a residential property.

In addition, since commercial mortgages are generally secured by an incorporated business, LLC, or partnership instead of an individual, the process of assessing creditworthiness tends to be more complex than with a residential mortgage.

While there are many situations that may make a commercial refinance advantageous for your business, the most common reason is to increase cash flow for the purchase of equipment, inventory, or business expansion. Refinancing your commercial loan will either replace your existing loan with a new loan at a lower interest rate, extend the term of your loan, or provide a combination of both.

Though terms and rates vary according to each commercial lender's requirements, the following terms and fees are relatively standard:


  • 5, 10, or 15-year terms

  • 10-year balloon, 25-year amortization schedule

  • 3-year balloon, 30-year amortization schedule (available for fixed interest rates only)

  • 5-year balloon, 30-year amortization schedule
  • 1% loan origination fee

  • Prepayment fees for fixed loans

  • Early closure fees
Once reserved exclusively for investment properties, commercial loans are now commonly available for owner-occupant properties as well. Commercial refinancing can be a complex endeavor, and not one that should be entered into lightly. Contact a commercial refinance professional to see what types of specialized loans are available to suit the needs of your business.

Business Refinancing

Equipment Refinancing

Questions to Ask When Refinancing

Refinance Mortgage Rates

Refinance Calculator

How Does Refinancing Work




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