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Home Refinancing Article
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Deciding whether Home Refinancing or a Commercial Loan for your multi family dwelling is Right for You
from:The downward and somewhat chaotic trend in home refinancing lately has made investors look for alternative solutions for their real estate investments. Many small time investors are looking for opportunities in the commercial market. Just like the home refinancing options available, commercial investors but secure enough knowledge about the commercial real estate industry to make a decision between home refinancing and commercial refinancing alternatives.
There are several differences between home refinancing and commercial refinancing and many investors do not realize this. With a commercial refinancing loan you do not necessarily need to show proof of income through your income tax returns as you do with some home refinancing plans but you do have to produce a lot of documentation proving income from all sources. On the other hand there are home refinancing plans that do not require documentation of income and will accept your home refinancing based on the equity of your home.
Home refinancing is doable with a property that is valued at 100,000 or less but it is next to impossible to get a commercial refinancing loan for such a small amount. If you are looking to refinance a single unit or two-unit home, you might find it hard to capture a business loan for such a small investment.
The interest rates charged on business mortgages, are higher than interest charged on home refinancing loans.
Business loans of require a personal guarantor. When more than one individual will own the real estate, the guarantor in this case will be all the owners who have an investment of over 20 percent in the property. Each guarantor will have to pass the credit check.
Commercial appraisals for real estate are more costly than for home refinancing or simple home financing. They can take up to several weeks. Unlike home appraisals, commercial real estate appraisal focus more on the income producing capability of the property than state of property in question.
It is important to know the ins and outs of both types of mortgage loans; you may have purchased a residential property with several units to rent out such as a condominium complex or apartment building and are considering a residential home loan versus a commercial business loan. You will need to weight the pros and cons of each kind of loan before making your decision.
The FHA Section 223f should be a program that will be high on your priority list to look into when you are financing or refinancing an apartment building. There are several term loans that are just not available for home refinancing plans. The government insured program against mortgage default offers many other benefits as well.
Home Refinancing Specific links
Home Refinancing News
Mortgage applications up on refi demand: MBA - Reuters
 Eastern Morning Herald | Mortgage applications up on refi demand: MBA Reuters | NEW YORK (Reuters) - Applications for home mortgages rose last week, fueled by demand for refinancings as mortgage rates hit fresh record lows, an industry group said on Wednesday. The Mortgage Bankers Association said its seasonally adjusted index ... Refinancing Up as Rates Keep Falling Today's Mortgage Rates: Bank of America, Chase and PNC Bank Refinance Rates ... Mortgage Rates: Low Mortgage Rates Spark Increase in New Home Sales |
California Refinancing Expert Explains New Home Affordable Refinance Program - SBWire (press release)
California Refinancing Expert Explains New Home Affordable Refinance Program SBWire (press release) California Refinancing Expert Jason Richardson explains all about the revamped government program that provides refinancing options to homeowners who owe more on their mortgage than their house it worth called HARP 2.0. Harp Loans Have Just Got Easier For Home Owners |
TEXT-Fitch may raise Home Credit & Finance Bank ratings - Reuters
TEXT-Fitch may raise Home Credit & Finance Bank ratings Reuters Refinancing risk appears to be limited as the bank has become mostly deposit funded (56% of total liabilities at end-2011) and liquidity risk relates mainly to potential instability of these. However, HCFB appears to have a solid deposit collection ... |
Senate Democrats push to ease home refinancing - Reuters
 Kansas City Star | Senate Democrats push to ease home refinancing Reuters About 1.1 million borrowers have refinanced through the Obama administration's Home Affordable Refinance Program, which was enacted in 2009 to help borrowers with little or no equity in their homes. But convincing Congress to agree to added mortgage ... White House and Senate Democrats Push Wider Refinancing Effort |
Sonoma County home refinance: When and how? - Community Voice
 Eastern Morning Herald | Sonoma County home refinance: When and how? Community Voice In other words, if your mortgage is 5 percent for example, and you can get 4.125 percent on a new home loan refinance, you shouldn't do it because you're not saving the full 1 percent. This information seems to float around among financial advisors and ... Fixed Rate Loans Still The Choice of Borrowers Who Refinance Mortgage Rates Today: Wells Fargo, Chase and PNC Bank Refinance Rates for May ... US 30-year mortgage rate falls to record 3.79 pct. |