Below are a few of the typical questions we field on a daily basis regarding Commercial Mortgage Refinance’s.

How long does it take to close?

The time to close is universally under estimated by banks, lenders and brokers. Many firms advertise 30 days, which is simply not the norm. Despite borrower’s frustration and confusion on why it takes as long as it does to close, the reality is that it is odd for a commercial mortgage to close in less than 60 days.

Oddly, one of the biggest delays actually is caused by the borrower’s inability and or reluctance to provide requested information. The borrower can have a huge impact on shortening the process by responding quickly to the lenders requests, even if they seem irrelevant or ridiculous.

What are the fees?

On a commercial mortgage refinance the borrower can expect to pay a bank fee of 1%, lender processing fee of approximately $1000, an appraisal will cost $2,000 – $5,000, title ranges from $800 – $2000, environmental report will cost between $800 – $1,800. The larger and more complex the deal the higher the costs generally will be.

What are my loan options?

The classic bank loan for owner occupant is a 5 year fixed, 20 year amortization program. In the wider market, options range from interest only, to 1 year adjustable, to 30 year fixed. Some lenders have created “stated income loans” where the borrower provides a limited amount of documentation.

What are prepayment penalties?

Prepayment penalties are a way for lenders to preserve their return on funding loans, if the mortgage is prematurely paid off. From the borrowers perspective this is a negative feature that tacks on an additional fee, which is in the form of a percentage of the remaining balance. For example, 5% for 5 years, prepay is market. In means that if the borrower was to sells on refinance the loan within that 5 year period he would owe 5% of the existing loan balance.

What is the application process?

Normally, after a preliminary verbal review of quotes and loan programs the borrower will be expected to fill out an application and provide documentation. Three years of business and personal tax returns, year to date profit & loss and balance sheets are requested. After a review of the above, the lender will issue a Letter of Intent which lists the terms of the potential loan. Assuming the borrower wants to move to the next step, they will be expected to sign off on the LOI, although this is not a binding step. At this point the lender will engage an underwriter(s) to thoroughly review the funding request.

If approved, the bank will issue a full Commitment Letter which is a binding documentation for both the bank and borrower. At this point and if agreeable to the borrower they’ll be expected to execute the Commitment Letter, provide money for the appraisal, environmental report, and processing fee. The loan has at this point been officially engaged.

Keep in mind that it is in the borrowers benefit to have their loan thoroughly reviewed before they commit to a lender so as they do not waste additional time and money on 3rd party reports.

248 885-8797 Jeff Rauth is President of Commercial Finance Advisors, Inc out of Birmingham, Michigan. He specializes in Commercial Real Estate Loans between $300,000 – $5,000,000. Offers unique loan programs such as Commercial Second Mortgages, Commercial 30 Year Fixed and 90% non SBA financing, and Commercial Equity Lines. 248 885-8797 Commercial real estate loans or SBA 7a Loan Commercial Loan Brokers
Article Source

Related Blogs- sorry the script doesn’t always fetch the right sites

• Mortgage Canada Ontario – Why working with a Broker is better …
• Fee would prevent cuts in in-home care for elderly, disabled …
• Understanding the Bad Credit Car Loan Process | Auto Credit …
• Need of Cash Urgently? – Consider Direct Lender Payday Loans …
• Student Loan Consolidation and Borrower Assistance Programs …
• Commercial Real Estate Investing | Live4Trading.com
• Karoshi Ethos » Smarty base href Modifier
• Four state-owned banks Bank Interbank funds transf « 人生地起点
• Borrower, Employ Thyself! But First… | Mortgages Unzipped
• Cypress Bio Rejects Buyout Offer, Shutting Down Commercial …

A bit of humor...


Powered By WPHumor

Famous Quotes..


Powered By Famous Quotes

Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

Powered By WP Footer

Mortgage Refinance Information

Prior to scouting out mortgage refinance loans, any potential borrowers should first review their current mortgage note. The first thing that you need to look for is a prepayment clause. Most home loans include some form of prepayment penalties for paying your home loans off early. Homeowners that have a first and second mortgage could also end up being slapped with steep prepayment penalties; which would go a long way towards negating the savings that would be obtained through refinancing.

Many mortgage refinance financial lenders tend to prey upon the idea of utilizing the equity that has been built up in your home in order to pay off your credit cards. Others will actually just combine this with some sort of a cash-out pitch. While this at first may seem tempting, it is not actually the best idea. Even though the home refinance loan rates may end up being lower, and you very well may end up with some extra money each month, over the long run you are going to be paying more in terms of interest charges because you are paying the refinance home back over such a long period of time (most people get a mortgage refinance with a 30 year term).

Besides that, even after you are able to free up that additional money each month using a mortgage refinance, it does not really provide you with much good unless you are going to put it into some sort of savings account. Otherwise you are still going to be just living from paycheck to paycheck. Also, if you end up getting another outstanding credit card balance, you will find yourself utilizing your house as collateral against the home refinance, and that rarely ends in a good way.

A home mortgage refinance can actually turn out to be a good idea, though. The key for this is to use some smarts when you go about the mortgage refinance process so that you are in fact doing it to actually save some money. This way you will be able to keep more of your own hard earned finances, and less of it ends up going towards the interest. The main rule of thumb when getting a home refinance loan is to do it only when the going rate is at least half a point lower than the interest rate you currently have.

This way the fees and costs that end up being associated with the paperwork and redoing the home refinance loan is worth the cost. Also, make absolutely certain that you are getting yourself a fixed rate. If your current loan happens to have a fixed rate and is even more than whole point higher than a new variable rate for example, it can mean really bad news when the interest rates end up going up.

Should I Refinance my Mortgage?

Instead of just getting a home refinance on a 30 year loan, you should be trying to get yourself a 15 year mortgage instead. This is a simply amazing way for you to save some thousands of dollars in interest. The monthly payments on your mortgage refinance may increase by $50-$150, but in the long run you are going to be saving a ton of money. That is quite a bit of money that you can utilize in retirement as another example, instead of allowing it to go to the bank for some extra years. Plus, most financial lenders will offer lower rates for home refinance loans that have a shorter time period attached to them.

Find the best mortgage modifications program that helps offering for home mortgage refinance companies. Nowadays Refinanceitt.com is among good loan modification website that best matches with nationwide lenders for homeowners to refinance home, lower mortgage refinance rates and loan modifications to help you stay in your home.
Article Source

Related Blogs

• How To Avoid Mortgage Insurance? | financebis
• Bad Credit Home Equity Loan | CCJS…Problem Solved
• IDEA: How to solve the Obamaspill Gulf Disaster — have his …
• Interest rates on loans to low-College | College Loan Interest Rate
• Make Yourself @home | Your Decorating Hotline
• District Unemployment Rate Drops – City Desk – Washington City Paper
• uValue » Home Staging Careers Fastest Growing New Career …
• San Mateo County jobless rate dips – US Unemployment Rate | US …
• Government planning to change Prepayment charges for home loans
• This Chocolate Covered iPad Idea Can Make You the Best Boyfriend …

A bit of humor...


Powered By WPHumor

Famous Quotes..


Powered By Famous Quotes

Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

Powered By WP Footer

Some homeowners want to know how soon they can apply for refinancing.  You probably want to know more about this.  With interest rates at all time lows, understanding when you can refinance is very important.  

Technically, there is no legal limit on when can you refinance.  It is possible to close your mortgage today and take out a refinancing tomorrow.  However, this scenario will not make sense.  

The thing is if you are holding a mortgage for at least one or two years, then you are within your legal rights to apply for refinancing.  It also does not matter whether you are refinancing your original loan or another refinance loan.  

However, do take note that almost all lenders will not approve your application if your current mortgage is less than a year old.  Moreover, your lender could impose restrictions on how soon you can get out of the loan.  Normally, you should stay with your current loan for at least a year so you can refinance without penalties.  But this is not always the case.  

Understanding Prepayment Penalties 

There are mortgage loans that come with prepayment penalties that apply for at least five years or more.  Penalties usually phase out over time. This means there are lower penalties if you refinance on the fifth year compared to getting out of the loan in the second year.  

Prepayment penalties will not prevent you from refinancing.  However, the penalties could reach up to 3 percent of the loan balance which could make refinancing very expensive.  It is very important to check if your current mortgage has prepayment penalty so you can avoid unpleasant surprises when you refinance. 

Reaching the Break Even Point 

Some homeowners have a wrong notion that repeated refinancing can affect the break even point.  This refers to the length of time that the savings from refinancing will equal the closing costs.  Normally, you can achieve the break even point in four to seven years.  

So if you do not intend to stay in your home for very long, then there is no point in getting a loan refinance.  However, it is not true that you will lose money if you refinance before the break even point.  When you take out a mortgage refinance, you are actually saving money.  You should only think about the break even point of the new loan.  That is because all the costs of the old loan will be rolled into your new loan.  

Declining Equity is a Bigger Problem

Declining equity is a big concern if you refinance too soon.  Because home values have been declining over the past years, your equity will also decline.  This will make mortgage refinancing too expensive.  You will find it more difficult to find refinancing if you have lost your equity to your home.  You will also pay for new private mortgage insurance if your equity goes below 20 percent of the current home value.  

You can close your mortgage today and refinance tomorrow.  This means that there are no legal limits on refinancing.  However, you have to understand that mortgages have certain restrictions that would make refinancing quite expensive.

-
About the Author:
Rob K. Blake, home loan expert and author, educates mortgage shoppers on finding local providers by state like Minnesota Mortgage Brokers and Lenders and provides reviews of national companies like AmTrust Bank Mortgage.
Article Source

A bit of humor...


Powered By WPHumor

Famous Quotes..


Powered By Famous Quotes

Please Note... All links within articles are placed by their author-owners and not by this blog.Products with in those links may or may not be the best in the world.If it sounds too good to be true it could be a scam.Articles are posted for their info,ideas and or entertainment value only.

Powered By WP Footer