Draw Me Self

To determine if your commercial mortgage refinance will qualify use the below parameters to "prescreen" your situation. Understanding your potential loans strengths and weakness will save you time and ensure your best chance of a successful close.

Ownership

First, how long have you owned the subject property? Has it been less than 12 months? Unless the title is free-and-clear or there is sufficient equity, the lender will use the purchase price plus any documentable improvements you've put into the property - not the appraised value.

For example, if you put down 20% a year ago you will not be able to pull additional funds out and risk have the Loan to Value on a rate and term refinance coming out higher than 80%.

Have you been turned down by banks? Find out why? Was it just an internal issue or something they think is a problem with the deal? It is better to lay your cards out with a new potential lender in the beginning rather than later. 99% of the time underwriting will discover the issue even if you do not disclose it. You want to find a capital source that will close, not just work on it for 2 months, then decline.

History and market

What was the original purchase price and realistic estimated real estate value. When was an appraisal last completed and what was the appraised value? Try to not make the typical mistake of overvaluing the property - you will be the one that pays for that mistake. Calculate your net operating income and find out the current market cap rate in the subject properties area. Then do some basic calculations to get an idea of the income value.

Current mortgage terms

What are your current mortgage terms? Are you refinancing because you want a lower rate? Longer amortization? Want to pull cash out? Or do you have a ballooning loan? What are your long term goals?

o When are you planning to sell?
o What kind of amortization would you like?
o Do you have a lockout period or prepayment penalty that you have to deal with?
o Can the new loan afford the lockout and prepayment costs?

Property

What type of commercial property are you refinancing? Different building types of vastly different terms. 80% loan to value on a stated-income restaurant deal will not fund while an 80% loan top value on an office building will. The property's zoning will dictate into which tier your property fits.

If your business occupies some of the space, what percentage? Is it more than 25%? Is it more than 50%? Many lenders will consider it an owner occupied deal if you're in more than 25%. Virtually all lenders consider it owner occ if your business occupies more than 50% of the subject building which will give you better terms.

Lease terms

What kind of leases does the property currently have? Are they NNN? How much of the expenses do the tenants pay outside of the lease? Is there a significant amount of leases coming due in less than 2 years? Are there any credit grade tenants within the building?

It's a very good idea to be prepared as your discussing your potential commercial mortgage refinance with lenders. Be ready to provide:

- Operating and income history;

- Rent rolls and annual rents;

- Net operating income;

- Vacancy information; and

- Total square-footage, number of buildings and units.

Being upfront a thorough in the beginning will save you time and money in the end on your commercial mortgage refinance.

In the past, when a home owner's mortgage came up for renewal, they simply went back to the bank holding the mortgage and signed a new agreement. First-time home buyers went to the bank they normally dealt with to apply for a mortgage. All that has changed over the last several years; consumers are much more likely to shop around to get the best possible interest rate. More and more of them are choosing to go to a real estate mortgage broker for assistance.

What is a Real Estate Mortgage Broker?

A real estate mortgage broker is a person who acts as the middleman between the person wanting to arrange the mortgage and the lending institution. The broker has the ability to work with multiple lenders, which means they may be able to find a better interest rate than the one offered by a bank. A real estate mortgage broker may also be able to arrange financing for someone who would otherwise have trouble getting a loan (bad credit, self-employed, gaps in employment history).

Finding a Real Estate Mortgage Broker

One of the best ways to find a broker is to ask friends, family members, and co-workers if they can recommend someone. A reputable broker will want to make sure his or her clients are satisfied with the service provided. It's a good idea to call your local Better Business Bureau to find out if there are any complaints on record against the broker.

Another way to find a real estate mortgage broker is to contact a realtor and ask if they know of anyone. The Real Estate Board serving your area may also have a list of local mortgage brokers. Listings for mortgage brokers can be found in the Yellow Pages or online.

Once you find a few mortgage brokers, contact them to find out how many lenders they work with. (You will want to find a broker who works with a large number of lenders.) This information may be included on the broker's website.

Mortgage Broker Fees

An important consideration when looking for a mortgage broker is how the broker is paid. In some cases, they charge the borrower an up-front origination fee (usually a percentage of the amount borrowed). The fee may also be added to the loan; this means that the borrower will need to add this amount to the loan and pay interest on it as well. The mortgage broker will also charge a fee to the lender.

Including the mortgage broker's fees with the amount borrowed may be a good choice for first-time buyers who don't have extra cash to pay up front or those who want to refinance their home to improve cash flow.

Who Needs a Mortgage Broker?

Working with a mortgage broker is a good choice for those people who want to ensure that they are getting the best possible rate. People who have been turned down by their bank may also be able to arrange mortgage financing with an alternate lender. With a financial commitment of this size, it's a good idea to shop around and consider the options before you sign a mortgage agreement.

One of the unforeseen consequences of the recent run-up of real estate values was that it affected your real estate taxes. Typically, as real estate values increased, in many jurisdictions, so did the annual real estate tax bill. While it is nice to have one's real estate value increase at 10% or more each year, the downside to that boon is a higher tax bill. While you had to sell (or refinance) your property to realize its increase in value, your increasing tax bill had to be paid in full each year. For those on a fixed income, that could prove to be a serious problem.

There may be hope, however. In most locations throughout the US, the City or County Property Appraiser or Tax Assessor looks at comparable sales of other houses in the neighborhood. Then, via protocols required by state law, uses those to assess all of the other houses in the neighborhood. Because this system may use the recent sales of just a few houses in a given neighborhood to set the assessment for dozens of other houses there, it is possible that your house may be just different enough not to "fit the pattern". Therefore, it might be over-assessed.

To find out if your house is really over-assessed, you need an appraisal from an experienced, professional real estate appraiser (not a broker, whose opinion carries very little weight with assessors and County property appraisers). This will cost from $250 to $1,000 (or more) depending on your house. Tell the appraiser up-front why you are getting the appraisal so the appraiser makes that clear in the appraisal report.

That way, the appraiser will know which date to use as the effective date. Then, when you get the appraisal, compare the value in it with the assessed value of your house. If the appraisal is less, then contact the taxing/assessing authorities, send them a copy of the appraisal, and ask them to lower the assessment. If that does not work, there is an appeal process (which the appraiser can explain to you) that is less expensive than going to court. If that appeal process does not result in a lowered assessment, typically the only other step is to sue the County assessor and ask the Court to determine the property's proper tax assessment. That requires an attorney (who is a lot more expensive than an appraiser!).

Although a home mortgage refinance is extremely profitable the majority of the time, there are certain situations where it is not indispensable going to be ideal. Each homeowner is only one of its kinds and it is important to take all of the necessary information into consideration and consider all options before making any rash decisions and following through.

When it comes to a home mortgage refinance, there are some things that you can do in order to agree on whether or not it is the right time for you to refinance. Successful refinancing typically means lowering your current mortgage loan rate by at least one percent. Though it may sound small, but even the slightest cut here is going to make an incredibly significant difference in the long term of things.

In addition in the matter of home mortgage refinance you want to think about the refinancing costs that you are going to incur. You are going to have certain closing costs linked with refinancing your loan, and this includes points and processing fees. You may also have the choice of rolling all of these costs into the loan in turn to reduce your out of pocket expenses.

If you are trying to purchase your own home and are looking to get a home mortgage refinance loan, then there are a few companies above all that are really going to be worth checking out. Consider that it is very important to take time when you are deciding on where to get your home mortgage refinance loan from since you want to make sure that you are going to be getting the best value and that you are not going to be getting ripped off.

If you desire a home mortgage refinance you are going to have to find a company to go through. Ameriquest, Countrywide Financial, E-Loan, LendingTree, The Mortgage Store - these are all incredible, reliable, and trustworthy refinancing companies that you can go through to find out the lowest refinancing rates and go through the process of refinancing your home.

Just learn by heart that there can be certain drawbacks from refinancing your mortgage as well, and there are some situations in which the homeowner is not going to yield from refinancing.

Nearly every homeowners have heard of the Lending Tree name before, whether they have had an interest in home refinance loans in the past or not. They are considered as being the top online lending and realty service in North America, and whether you are looking for a home refinance loan, realtor, or new home all in all, the Lending Tree Company can help you out and give you what you need.

They recommend information on a variety of areas including refinance mortgage, home purchase loan, home equity loan, auto refinance, auto loan, student loan, commercial loan, personal loan, find a realtor, home price check, newly constructed homes, homes for sale, for real estate agents, credit repair solutions, high yield savings, free credit report, free car insurance quote, expert advice, money saving tips, lender scorecard, calculators, and even a Lending Tree TV option.

If you are seeking for home refinance loans, the Home Loan Center is going to be an ultimate option for you. They focus in mortgage refinance, home equity loans, and home purchase loans. The Home Loan Center is the primary consumer-direct online mortgage lender and they are truly and earnestly committed to providing homeowners with the best loan and rates possible.

They offer years of experience in the home refinancing field and will assist you to find the perfect loan from the diverse array of mortgage products that they offer.

Before deciding on opting for home refinance, you have to consider your motives and it would not be sensible to put into jeopardy yours and your family's future devoid of having properly assessed every aspect to taking home refinance. You should be understandable that it is worth putting your home up as equity to pay off your credit card debts, assess if you can get lower monthly payments in the course of this means, and decide whether to stay in the home after obtaining home refinance.

Besides, you also need to know how to handle lenders and not become a borrower that is easily confused into taking a deal that is bad which typically happens when you are in fear of getting the loan approved. There no doubts that home refinance is a useful tool that can offer you with a stable future; nevertheless, you also should be aware that you don't need to drown in any monetary whirlpool either.

If you own real estate then you know all too well how the interest charges pile up over the course of 30 years. You would love to pay it off but it seems like a lifetime away before your mortgage statement shows a zero balance. There are some things you can do to pay down your mortgage debt earlier and save money that would have gone to interest.

1. Ask your lender if you can make biweekly payments. Every two weeks, pay half of your mortgage payment. At the end of the year you will have made one full extra payment. To make sure this works to your benefit, make sure your lender understands that you want each payment applied as it comes in and not wait for the second half before applying it to your balance.

2. Make extra payments to the principle. Make your normal payment as usual, but make additional payments on the principle. It is very important that you note on the check that it is for principle only. Otherwise, it will likely be applied as a normal payment with the majority going to principle or it will be held as a credit for the next month's check.

3. Refinance if the real estate rates are low enough. In order for it to make sense, interest rates should be about two points lower for you to reap the benefits. When doing this, you have to weigh the great rate, lower payment and more closing costs to see if it works for you. When you lower your payment, continue to pay what you were with the higher rate, indicating that the extra is for principle.

4. Refinance to a shorter term. A 30 year mortgage has a lower payment, but you are paying for longer which means more interest. A shorter term will have a higher compensation, but you will get out of it sooner with less interest charges.

Talk to a mortgage professional before making a move. Check your math and make sure you can afford to pay off the real estate loan early. If it prevents you from saving for your child's education or drains your savings, you want to really think about it before acting.

Also, check with your lender about early pay-off penalties and other fees that may affect you if you do this. Another issue to consider is how long you plan to be in the home. If you are likely to move in the next five years, it doesn't make much sense to invest in an early pay-off.

If you've done your homework and are ready to leap, then go for it. Reap the benefits of paying off your real estate early and start planning what you will do with all that extra money in your pocket!