For many commercial mortgage borrowers, refinancing a ballooning note can be a challenge. Once the lender calls the note due, they have a limited amount of time to provide the funds to pay off the loan. In this situation, a non-conforming commercial mortgage lender that offers fixed and fully-amortizing programs could be a great alternative […]
Category: Refinance Balloon Payment
Refinancing to Pay Off a Ballooning Commercial Mortgage
It’s not uncommon for small business owners to face a ballooning commercial mortgage. In these situations, borrowers have a limited amount of time to obtain the necessary funds to pay off the mortgage. Because of this, many borrowers turn to brokers in order to get the money they need quickly. If you’re a broker working […]
Understanding Commercial Mortgage Seasoning Requirements
“When did you purchase your property and what did you pay for it?” This is a crucial question that brokers handling commercial mortgages should always ask when their borrower is looking to refinance. Many lenders will need to know the length of ownership and the purchase price before they can begin the underwriting process, so […]
Pursuing Commercial Mortgage Opportunities
Commercial mortgage brokers will likely see more opportunity to refinance ballooning loans as loans made during the lending boom mature, according to a Bloomberg report. In 2017, $90 billion in maturing commercial mortgages will come due, and the report indicates that rising interest rates and regulatory constraints will make it difficult for some borrowers to […]
How to Handle a Ballooning Commercial Mortgage
As the last of the pre-recession commercial mortgage notes begin to come due in 2017, it’s important for commercial brokers to reach out to those borrowers who might struggle to find the financing to pay them off. The volume of loans that have come due in 2016 and that will come due in 2017 is […]
What Commercial Mortgage Brokers Need to Know About Loan Seasoning Requirements
When you begin working to refinance your borrower’s commercial mortgage, one of the first questions you should ask is how long they’ve owned the property. Most commercial lenders will need to know the length of ownership, so it’s important to know when your borrower purchased the building and how much they paid. This will help […]
Are Fully-Amortizing Loans or Balloon Terms Best for Your Commercial Borrowers?
The post-recession commercial mortgage market can be unnerving for borrowers. The fact that capital availability isn’t constant is often a major concern for small business owners. As a broker, it’s important that you understand this problem. It’s because of this uncertainty that fully amortizing loans can be a very attractive option for some of your […]
POP! Goes the Relationship: Is a Balloon Payment Loan Best for Your Commercial Borrower?
If you are in the mortgage brokering business for the long haul, you need to know the best outcomes for your borrowers. As a commercial mortgage broker, it’s in your best interest to consider what’s best for your borrowers when it comes to loan terms. Many commercial lenders offer what at first glance seems like […]
Refinance And Pay Off A Ballooning Commercial Mortgage
Each year, many borrowers with commercial mortgages face balloon payments coming due. As a commercial mortgage broker, you’re likely to serve some clients who are looking to refinance their small commercial mortgages in order to pay off a bank loan. Banks generally re-evaluate commercial mortgages every five to ten years, and they can either renew […]
Balloon Payment Due? Consider Refinancing.
Many small business owners are about to come face to face with a big problem: balloon payments are coming due. Banks usually re-evaluate commercial loans every five to ten years, and they can either decide to renew the commercial loans or ask the borrowers to pay them off which is the balloon payment. Now, commercial […]