When is the best time to refinance a commercial loan? Factors such as prepayment penalties, goals of the borrower, market rates, and existing loan terms come in play. Of course there’s no exact formula, but below are some thoughts on how you might analyze your commercial loan refinance.
The Discounted Cash Flow method is the traditional system used, which essentially compares the existing loan vs. the proposed loan on a Net Present Value basis. However we have found that most commercial property owners are really interested in: