Commercial loan refinancing: An opportunity to start afresh

It does not happen very often that people get chance to rectify their past mistakes. It rarely happens that they are able to take benefits of future developments even when they have some prior commitments to their disadvantage. But, if you talk about refinancing of commercial loans then you are surely in a better position to take benefits of the prevailing market conditions.

People who have taken commercial loans at a time when the rates were high would like to enjoy the benefits of current low rates that exist in the market. In a market that is bearish and the interest rates are falling, refinancing is a wonderful opportunity for the businessmen to start afresh. Commercial loans are mostly taken by businessmen to support their growing financial needs. You cannot afford to continue with them if the interest rates in the market have considerably fallen. Same situation happens whether it is a commercial loan or mortgage.

Apart from low rates, some of the other reasons that make refinancing fruitful to you are:

• If you want to extend or shorten the repayment period. For example, for a reduced monthly repayment you can refinance commercial loan with a 15-year term to a 20-year term.

• Similarly, this can be done to get better loan conditions like variable rate of interest. This is particularly beneficial if the interest rates are falling.

• If the value of your business premises has increased tremendously, you can refinance to get more commercial loan.