What does it mean to refinance commercial property?
In real estate, commercial property is real property that houses businesses used to generate income. This includes office buildings, industrial properties or retail spaces. However, commercial property can also include large residential apartment buildings.
At its core, refinancing commercial real estate (CRE) works similarly to refinancing a mortgage on a residential property. The refinancing process involves using the money from a new loan to pay off an existing one. Typically, borrowers refinance their loans when they can qualify for more favorable terms, such as a lower interest rate or a different loan type.