Though refinancing a mortgage leads to penalties for prepayment and breaking the contract, there can be many benefits if you refinance and enter into a financially better mortgage product.
Lower interest rates coupled with flexible terms and conditions can benefit your business and help you save thousands of dollars.
You can draw many benefits from getting your commercial mortgage refinanced. It is advised to get in touch with experienced commercial real estate lawyers for expert advice and understand the complete cost analysis before you decide on it for your business.
When Should You Consider Commercial Mortgage Refinancing
Professional mortgage brokers can assist in understanding the options available to you in commercial mortgage refinancing. There can be different reasons for you to consider commercial mortgage refinancing.
Reduce the cost of borrowing
With a lower interest rate, you can lock in your mortgage for a longer term. Apart from reducing your cost of borrowing, it helps you secure a smaller mortgage payment and long-term security. If you consider the entire life of the commercial mortgage, you can potentially end up saving thousands of dollars.
Lower your monthly debt payments and consolidate all your debts when you choose to consider commercial mortgage refinancing. It can allow you to secure more favourable terms and conditions for all your business debts.
You have the opportunity to consolidate debts including loans, credit cards, or lines of credit and all other high-interest rate debts which your business may have accumulated. Improve your cash flow and lower your total monthly payments with commercial mortgage refinance.
Leverage and Growth
With time, your growing business is likely to require increased space, enhanced equipment and upgrades for its operations. Commercial mortgage refinancing allows you to take the business equity and leverage it to help expand business operations and increase assets.
Enhance Cash Flow
A primary reason an owner refinances his/her commercial property is to improve cash flow. By taking advantage of the current interest rate environment, borrowers can reduce their annual debt service resulting in additional cash flow. Also, there is the ability to reloading the amortization up to 30 years.