Commercial Refinance Rates and How They’re Determined
If you’ve found yourself in a commercial loan with unfavorable terms for any reason, you’re likely interested in finding out about commercial refinance rates and how they can benefit you. Refinancing a commercial loan is a common and extremely effective way to improve the terms of your loan and make them more favorable for you in both the short-term and the long-term. So what are commercial refinance rates, and how do they work?
One of the most common reasons individuals and businesses approach us about refinancing their commercial loans is to escape a high loan rate for a lower rate. Their initial high rate could be the result of several factors, including a poorly executed loan or simply the type of loan they received. A refinance loan will pay off your original loan/lender and initiate a new loan with a lower rate or longer term.
There are also two additional motivations we tend to see for refinancing a commercial loan. One is an upcoming balloon payment. Balloon loans are structured with a large final payment at the end of the loan term, unless the loan is refinanced into a new loan. Refinancing allows you to avoid the balloon payment without needing to contact your current lender and try to secure more time. They’ll usually reward you with fees and even higher interest rates.
The other common reason for refinancing is the ability to take cash out of the property to put towards other opportunities and investments relating to your business. Cash taken out of your refinanced loan will be cash deferred. This gives them the chance to enjoy a high return on their investment over time.
With these factors in mind, businesses often wonder about the state of commercial property finance rates and how they fluctuate.
Current Commercial Refinance Rates
Generally, refinance rates tend to follow commercial lending rates as a whole. And that’s good news, because rates are currently nearing an all-time low. Generally, we offer rates that range between 4% and 11%. Keep in mind there is a high degree of variance based on your unique situation, your business, and the structure of your loan. But those figures should give you a general idea of what to expect for commercial property refinance rates.
At Clopton Capital, we offer competitive commercial refinance rates designed to put you and your business in a better situation for both now and in the future.
Access the Best Commercial Property Refinance Rates Available
Whatever your motivation, contact Clopton Capital today to access the most competitively priced commercial refinance rates available and take control of your commercial property loan.