I would like to refinance a commercial property and payoff a second mortgage?
Sep 07, 2009
in
Commercial Mortgage FAQ
I have a second mortgage on my personal property with a 6.50% I want to refinance a commercial property and pay off that second mortgage. My first mortgage has a 4.7% My commercial property has a 6.50% This is a 5 year balloon rate the 5th year is quickly approaching. What should i do? Would this be in my best intersest?
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2 comments
Akbar B on September 7, 2009 at 10:54 pm
Yes you should refinance if you have the income to support it. It sounds like a good plan, good luck.
rich8259 on September 7, 2009 at 10:54 pm
It will, in all likelihood, be a moot point since "cash-out" re-fi’s are very rare in today’s tight credit market unless you have substantial equity in your commercial property. You did not provide enough information to determine if in fact this is even plausable. What is the balance on your personal 2nd? How much is your commercial 1st that is coming due? What is the commercial property worth? Do you have 50% or more equity? How much cash do you need to pay off your 2nd? Is your 2nd higher than your 1st?
Refinancing is a non-taxable event so it may very well make sense for you to do this depending on the answeres to all these questions but remember, once you pay off that 2nd, you no longer have it as a tax deduction (it may not matter if President Obama pushes through his proposed tax legislation eliminating this tax deduction).
You may want to discuss this with either your CPA or if you have one, a financial planner. Good luck.