$2,850,000 additional funding. A longstanding client approached us with a few different projects wondering the best way to achieve the borrower’s ends of obtaining cash-out refinance proceeds.
Commercial Mortgage Broker Financial Compound worked with the borrower and lender and determined that an additional funding on a loan we had completed 2 years ago was the best way to meet the borrower’s various financing needs. Capitalizing on the existing equity in the property, the borrower was able to secure funds for several different projects at a low fixed rate and with minimal closing costs, and without the need to go back for subsequent approvals from lenders for the various projects.
The additional funding will enable the borrower to complete several business plans in their final stages. By comparing the various financing options, along with the timeframes of each project we determined the amount of time that the funds would be drawn but unused under this structure, and the quicker execution, lower cost, flexibility to deploy the capital without requiring lender approval, and limited documentation made this option the best of several that we explored.
The interest rate for the remaining 5 years is fixed below 4.80%, with a 4,3,2,1,0% prepayment penalty.