Share:

Commercial property owners have significant equity tied up in real estate to renovate their properties or invest in new industries. Obtaining a commercial equity loan seems like an obvious solution, but Fannie Mae and Freddie Mac  allow borrowers to access this wealth through cash-out refinance solutions. This can provide you with the cash you need and lower your interest rate.

What Is Cash-Out Refinancing?

fannie maeUnlike real estate equity loans, which are separate from the mortgage, cash-out replaces the original loan entirely. In these programs, borrowers refinance the property for more than the amount owed and keep the remainder. For instance, if you currently owe $1.5 million on a multi-family property valued at $2 million, a cash-out refinance will pay off the original mortgage, leaving you with $500,000 in cash. Cash-out refinance mortgages usually have lower interest rates than home equity loans.

How to Obtain Cash-Out Refinancing

Many prominent lenders, especially those who work with Fannie Mae or Freddie Mac, provide cash-out refinancing options for owners of multi-family properties who meet their eligibility requirements. Borrowers interested in extracting cash from their real estate investments can contact a lender or mortgage broker to identify the programs best tailored to your situations. Brokers with specialized training and credentials can prepare the loan for sale, ensuring you get the best terms.

 

 

The experienced professionals at Howell Investment Finance work with many of the industry's top lenders, including Fannie Mae and Freddie Mac, to secure financing for commercial properties throughout Iowa and the Midwest. Visit their website to see their full list of loans today, or call (515) 233-8228 to discuss your options with a member of their team.

tracking