Welcome to Refinancing Guide
Commercial Mortgage Refinance Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
Why Refinance A Mortgage
from:With the current market trends as they are as well as the shaky economy, many lending institutions are being flooded with customers wanting to refinance mortgage loans. Many mortgage loans are adjustable rate mortgages, meaning the interest on the mortgage fluctuates every time there is a change in the stock market. You can take out a mortgage thinking you're paying an annual interest rate of 7% only to find out a year later that it's increase to 9%. While this may seem like only a 2% increase, but not only may it increase your monthly payment, but it will also increase the balance that you owe on your mortgage. Many people are surprised, if not shocked, at the difference that 2% can make with a large mortgage and over a long period of time. This is a major reason why most people choose to refinance mortgage loans.
In adjustable rate mortgages, the rate can go up or down. Usually the banks use an amortization schedule over a long period of time to figure the interest and payments, but balloon the loan over a shorter period like 36 to 60 months. At the end of this balloon period, the couple will refinance the mortgage loan with new terms or sometimes the same terms. When it's time to refinance mortgage loans because they are up for renewal, you should always shop around. Many people are comfortable with their current banks or lending institutions, especially if they've been with that institution for a long time.
While you may be comfortable with this bank, you may not be getting the best possible deal in terms of interest and loan terms. It never hurts to see what the competition can offer. If the competition can offer you a better interest rate, not only will you be saving money, but you may be able to use this as leverage with your bank in getting them to match the rate. If they won't match the rate, you may be wise to refinance the mortgage with the new bank. You will not be the first customer to refinance mortgage loans at a different bank. Everyday banks get hundreds of customers from other banks with the hopes of doing a refinance. Mortgage loans are one of our largest investments and we all want the best possible deal.
There is one factor to keep in mind when you decide to refinance mortgage loans. When you get your original mortgage loan, the bank charges fees for required services such as appraisal of your home, title insurance and sometimes legal fees. These are usually one-time fees that are either added to your loan or paid at the closing of the loan. When you refinance mortgage loans with the same bank, you will not have to pay these costs again. However, a new bank will be starting from scratch and you'll have to pay these costs again. So before you refinance your mortgage, consider all the options.
Commercial Mortgage Refinance News
Commercial loan "nightmare" projected for 2009-JPMorgan - Reuters
Commercial loan "nightmare" projected for 2009-JPMorgan Reuters - Results of the negotiations are closely watched in the $750 billion commercial mortgage-backed securities market, which has been battered on expectations a ... |
Commercial mortgage delinquencies on rise - FinancialWeek (subscription)
Commercial mortgage delinquencies on rise FinancialWeek (subscription), NY - ... but contracting credit markets and lenders’ risk aversion have put an end to easy refinancing. Sound familiar? An increase in commercial mortgage ... |
Paulson’s Remarks on the US Economy - Wall Street Journal Blogs
Paulson’s Remarks on the US Economy Wall Street Journal Blogs, NY - The facility may be expanded over time and eligible asset classes may be expanded later to include other assets, such as commercial mortgage-backed ... |
Meltdown far from over, new mortgage crisis looms - The Associated Press
Meltdown far from over, new mortgage crisis looms The Associated Press - And since investors no longer want to buy commercial mortgages, banks are reluctant to write new loans to refinance those facing foreclosure. ... |
General Growth wins extension on $900M loans - Providence Business News
 The Star-Ledger - NJ.com | General Growth wins extension on $900M loans Providence Business News, RI - The company recently retained Sidley Austin LLP, a Chicago-based corporate law firm, to advise it as it seeks to raise capital and refinance its debt amidst ... General Growth Announces Two Week Loan Extensions Owner of Tucson and Park malls gets loan... |