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Get A Commercial Mortgage Refinance With Clopton

Commercial mortgage refinance is a process by which the interest rate on a commercial loan is reduced.

What does it mean to refinance commercial property?

Commercial Mortgage Refinance

A borrower can take out a new loan at a lower interest rate and use the money from the old loan to pay off the balance as part of the refinancing process. The lender will then sell or assign its rights to collect payments on that debt to another entity, such as an investment bank. Commercial mortgage rates are typically higher than those for residential mortgages, but there are many reasons why businesses may want to refinance their commercial loans, including:

  1. Lowering overhead costs associated with high-interest commercial loan
  2. Improving cash flow by lowering monthly payments
  3. Reducing borrowing costs in general
  4. Extending the term of the loan to reduce monthly payments, and
  5. Reducing risk and interest rate volatility.

Pros and Cons of a Commercial Property Refinance

Commercial mortgage refinancing can be a great way to save money. But it’s not always the right choice for every business. To help you decide if this is right for you, here are some of the pros and cons of commercial refinance loans.


  • You may have lower monthly payments with a commercial loan than with your current one, which means more cash on hand for other things.
  • Commercial mortgages typically offer a lower rate refinance than residential mortgages because they don’t come with high risk factors.
  • The interest rate is often negotiable, which can make it easier to get an attractive rate even if your business credit score isn’t perfect. Refinancing at a lower rate is a great way to save money over time.


  • It’s more difficult to qualify for commercial banks because banks usually require a higher credit score for a commercial loan. If your business has been operating under a different name, this can be tricky to prove.
  • The time it takes to complete the process of applying and qualifying can be long.
  • It’s also important to pay close attention to the “points” that accompany the loan as well as what you’ll owe in closing costs

Who should consider refinancing commercial real estate?

Commercial refinance lenders may be more likely to provide a commercial mortgage than a homeowner, and they’re often easier to qualify for. With Commercial mortgages you can generally lower your interest rates and monthly costs by about 15%. These loans are also cheaper to the lenders themselves since the risks of default are much less. Scalability is another aspect that many small businesses dream of. Most commercial loans offer terms as long as 30 years so if you start slowly but have big plans, this might help you out.

Commercial property refinance loan types

The following are four types of commercial property refinance loans. This is not an exclusive list, and other options include CRE refinance options for small business loans such as an SBA 504 refinance loan not found here. Other options include secured business loans.

Traditional Commercial Property Refinance

This type of mortgage involves taking out a new loan with a different interest rate that will be used to pay off the balance on the old loan.

Cash Out Refinance

Cash Out Refinancing
With this type of loan, the borrower will need to have equity in their property in order to take out a new loan, so they can use it for cash-out or build-out. The borrower will need to have enough equity in order to cover the down payment and closing costs for this kind of home mortgage refinancing.

Interest Only Mortgage

The borrower only pays the interest on their loan, which allows them to invest the difference. This can help them pay off their existing mortgage faster or build up some equity in the property.

Hybrid Mortgage

With this kind of loan, part is interest-only and part is paid on a fixed schedule. The borrower will need to have enough income to cover the full payment if they choose to make the interest-only payment.

Get a commercial mortgage refinance with Clopton Capital

Clopton Capital specializes in real estate financing nationwide for a client base that centers on private investors, small/middle market real estate entities, and family offices displaying a wide range of needs. While our activity generally concentrates on standard commercial mortgages, it also extends to construction loans, cash-outs, refinancing loan vehicles, CMBS, bridge lending, preferred equity, and joint venture equity. This page deals specifically with refinancing, with or without cash-outs.

Commercial mortgage refinance options Clopton offers

  • Maturing loan with a pending balloon payment
  • Lower interest rate
  • Fixed period resetting
  • Commercial cash out refinance
  • Provide longer or shorter amortization
  • Partner buyout
  • Provide renovation capital

We can offer the following terms

  • Up to 75% LTV (commercial) 80% (multifamily)
  • Fixed period up to 30 years
  • Up to 30 years amortization, interest only available
  • Non-recourse and recourse available

How to refinance commercial property

Tips for successfully refinancing a commercial loan

Commercial mortgage refinance tips:

  • Be sure to take into account the loan term and interest rate on your existing commercial property.
  • Calculate the monthly payment for a new commercial mortgage, accounting for taxes and insurance.
  • Keep in mind that you may need to pay more than one point for a sum of money up front as well as private mortgage insurance (PMI). This is an expense every month, so be sure it’s worth it before signing off!
  • Make sure you have enough cash on hand to pay closing costs. You should have this money before applying for a commercial property mortgage refinance.
  • Be sure your other debts are under control, including credit cards and car loans. If you are paying more interest than your business can afford, then refinancing may not be the best choice.

Fees and costs to refinance commercial property

Wondering about the basic loan fees associated with refinancing commercial loan terms? Most closing costs will be paid by the lender, but not all. The borrower is usually responsible for what is known as “processing costs.” These are things like loan origination fees, title insurance fees, and recording fees.

It is important to understand that these fees do not always total up to be large enough to cover the cost of closing. There are some lenders who are willing to pay these processing costs if it means they get a chance for the borrower’s business. The fee schedule should be discussed with the lender so there are no surprises at closing time. It should also be noted that you can’t get out of paying any third-party fees even if you don’t get refinanced. Fees to refinance commercial property can be significant, so be aware of them.

When is the best time to refinance a loan?

If you need to refinance a mortgage, the best time to do it is when interest rates are falling while your credit score and financial health are rising. This will help ensure that you can get the best deal on your new loan, taking advantage of purchase rate responsiveness.

What are important factors in refinancing a commercial loan?

You want to make sure that you have a good credit score so you can get refinancing at a competitive rate. You also need to be sure that your business is in good financial shape and that it has been performing well recently. If you are refinancing, there may be some fees involved with the closing costs of the new loan, but ………………..

Can you use a commercial mortgage to refinance a commercial property?

Yes, using commercial mortgage refinancing is one of the most effective ways to lower interest rates on your original loan. By lowering the interest rate with a refinance, you can save thousands of dollars in interest fees over time.

Can you use a commercial mortgage for renovations on a commercial property?

Yes, you can use a commercial real estate financing for renovation on your commercial property. This is because the loan amount will be increased based on how much work you need done to the building and what it will cost. The lender’s approval of your construction capital does not depend on whether you will use the money for renovations or as an initial down payment.

How to qualify for a commercial mortgage

Applying for a commercial mortgage is easier than you might think. The first thing that you have to do is to speak with a reputable bank or other lender about your request. They will need to know how much money you want, what you plan on doing with the funds once they are in your hands, and about your credit score and financials.

The requirements for refinancing commercial real estate are actually less stringent than the requirements for personal credit. Commercial borrowers usually do not need to provide income verification if their loan is large enough, generally in excess of $1 million.

Commercial real estate refinance requirements

Basic loan requirements and real estate refinance requirements for a commercial loan include the following:

  • Proof of steady income that will likely continue into the future. This can be in the form of a W2, tax returns, personal financial statements or brokerage statements.
  • A down payment on your refinance project. This is determined by how much you are willing to write a check for, the minimum being 20%.
  • A strong credit score. Ideally, you want your FICO score to be at least 720 before refinancing a commercial property. You can get a free copy of your personal credit report from each of the three major bureaus by going to AnnualCreditReport.com.
  • Solid business and financials. If you want to refinance a commercial property, your business must be profitable and your accounts receivable should not exceed 60 days of sales on average.
  • A track record of making timely payments on previous loans. This is what will allow you to show future lenders that you are likely to make timely payments on the new loan.

The fastest way to get a commercial mortgage

The fastest way to get a commercial mortgage is by talking with someone who can give you one, like a bank. They will want to know how much money you want, what you plan on doing with the funds once they are in your hands, and about your credit score and financials.
=>Commercial borrowers usually do not need to provide income verification if their loan is large enough, generally in excess of $1 million.

Commercial mortgage refinance FAQ

Is it a good time to refinance a commercial loan?

Look at the market. Interest rates are going up and experts predict they’ll continue going up reasonably soon. That means now may be the perfect time for a refinance.

Can you remortgage a commercial property?

Yes! Commercial properties can be refinanced much like the way that residential mortgages can be refinanced. Many of the terms, requirements, and processes involved are extremely similar to that of a residential refinance or other loan refinance process.

Who is a commercial refinancing loan good for?

Commercial property owners can see substantial savings if they take the time to refinance their property. A commercial property refinancing loan is good for those with a lot of equity in the property, who want to increase their cash flow with lower interest rates, or who need to improve their business’ financial health.

Other potential candidates include commercial property owners with a lot of equity, who want to increase their cash flow, or need to improve their business’ financial health.

What are the eligibility requirements for a commercial real estate loan refinance?

Commercial real estate loans are available in the United States up to the commercial property value, which is usually 80% or 90% of the home’s current appraised value. There are two types of commercial mortgages – owner-occupied and rental properties. Ownership type may be an important factor when determining eligibility for a commercial mortgage refinance.

Can you pull equity from a commercial property?

Yes! It’s possible to use a commercial property refinance to pull equity from your property. Commercial property financing recipients can see substantial savings if they take the time to refinance their property. A commercial property refinancing loan is good for those with a lot of equity in the property, who want to increase their cash flow with lower interest rates or who need to improve their business’ financial health.

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