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What is a cash-out refinance?

A cash-out refinance replaces your existing mortgage with a new loan for
more than you owe on your property. The difference goes to you in cash
and you can spend it on home improvements, debt consolidation or other
financial needs. You must have equity built up in your house to use a cash-
out refinance.

Pros of a cash-out refinance
There are many advantages to using a cash-out refinance over other types
of loan products if you need a large sum of money. Here are some
common reasons to use a cash-out refinance:
 Get a lower interest rate on your mortgage – This is the most
common reason why most people do a traditional refinance, and it
makes sense for cash-out refinancing, too, because you’ll be taking
on a larger loan.
 Make value-added home improvements or repairs to your
property – property owner who use cash-out refits for these types of
projects can deduct the mortgage interest from their taxes if these
projects substantially increase the home’s value. Also, tapping your
property’s equity could be less expensive than other forms of
financing, such as personal loans or credit cards.
 Consolidate and pay off high-interest debt – This move might
make financial sense, but make sure the math checks out, says
Cash-out refinancing is beneficial if you can reduce the interest rate
on your primary mortgage and make good use of the funds you take
out

What is a CMBS loan?

CMBS loans are also known as commercial mortgage-backed securities or conduit loans. These loans are used to purchase commercial real estate buildings like multifamily properties office buildings, or warehouses. They typically offer flexible underwriting standards and use the property as collateral.
That said, a CMBS loan is different from a traditional commercial loan. With a traditional commercial loan, the lender gets paid back over time. However, a conduit loan will be sold and packaged along with other commercial mortgage loans into a trust called a Real Estate Mortgage Investment Conduit (REMIC), turned into bonds, and sold on the secondary mortgage market to bond investors. This process is known as securitization, and it’s where these loans get their name
The advantages of CMBS loans
The main advantage of choosing a conduit loan is that these loans typically offer a better interest rate than a traditional commercial loan. They also usually offer a fixed-rate option, which can give you the ability to plan for your payments more effectively.
Additionally, CMBS loans are nonrecourse loans, which means that the buyer is not held personally responsible for paying the loan. However, some of these loans do have a clause stating that if you intentionally cause harm to the property, your CMBS lender, or your investors, you could be held liable.
Lastly, these loans are assumable, so if you decide to sell the property in the future, the buyer can take over your CMBS financing and your interest rate. However, be aware that most lenders do charge a fee for this service.

Is A Commercial Bridge Loan Right For Your Business?

A commercial bridge loan is a right choice for every business. How do you determine if your business will benefit from a bridge loan? There are a few things to consider.

However, if you need funds for one of these reasons, consider speaking with a lender:
•Close A Deal Quickly: When the real estate market is hot, you have to strike quickly, or you’ll get left out in the cold. Lining up a mortgage or long-term loan can take weeks or even longer, and by that time, you may have lost out to another buyer. If you want to purchase a commercial property fast, you can get the funds you need with a commercial bridge loan, which buys you enough time to secure another source of funding.
•Work On Your Credit: Is your credit preventing you from getting a mortgage or a bank loan? If so, making a purchase using a bridge loan may be a wise choice. If you need to make a purchase now but also need to work on your credit (i.e., paying off debt or disputing erroneous items on your credit reports), bridge loans provide you with the capital you need until you’re able to clean up your credit and obtain another loan.
•Acquire A Business: If you plan to purchase another business, time is of the essence. Instead of waiting on funding, a bridge loan can help you push the deal forward quickly.
•Renovate Your Property: If you want to improve your business to draw in new customers, a bridge loan can help you get the ball rolling on renovations sooner rather than later

To receive a free consultation and confidential evaluation of your loan scenarios, please contact us at
info@magnaloans.com