Commercial Cash Out Refinance
A commercial cash out refinance is a mortgage refinancing transaction in which the new mortgage amount is greater than the existing mortgage amount plus loan settlement costs. The original mortgage is retired and a new mortgage created, with the difference between old and new available as cash out to the property owner.
By obtaining a commercial cash out refinance, commercial real estate owners are able to take advantage of trapped equity in their properties and use it for other purposes.
In contrast with typical banks, Clopton Capital places no restrictions on what the funds are used for. Typical bank lenders either don’t allow commercial cash out refinancing or else closely scrutinize what the money is intended for. We make the funds immediately available at closing with no questions asked.
Here’s an example of a commercial cash out refinance:
Property value = $4 million
Existing loan balance = $2 million
Refinance loan amount = $3 million (75% LTV)
Proceeds given to owner = $1 million
Contact us about our Commercial cash out refinance programs
To understand more about cash out refinancing, contact one of our commercial mortgage lenders by calling 866-647-1650 or using the Contact Us form available from the menu.
Clopton Capital is a nationwide commercial real estate capital company and mortgage banking firm. We specialize in commercial mortgages, commercial bridge loans, and real estate private equity for transaction sizes ranges from $1 to $40 million. The commercial mortgage lenders at our company bring long lasting relationships with capital providers that give our clients deep insight and superior execution.