Overview
Refinancing decisions are time-value-of-money problems disguised as rate-shopping problems. The break-even math, cumulative rate savings vs. prepay premium plus refi costs, should drive timing more than the sticker spread. This hub aggregates the refi optimization pillar, prepay calculator, sibling Q&As, and glossary.
Why this matters
Refinancing too early burns prepay premium that could have been avoided. Refinancing too late misses a low-rate window or runs into a maturity wall under pressure.
Sponsors should track each loan in their portfolio against a break-even spread (the rate at which refinancing breaks even given current prepay) and against the maturity calendar. Both should be kept current.
How to use this hub
Start with the pillar for the framework. Use the prepay break-even worksheet to evaluate specific loans. Drop into the Q&A library for cash-out, structure, and timing questions. Reach the glossary for terminology.
Pillar guide
Sponsor-side tool
Sibling Q&As
When should I refinance my CRE loan?
Refinance triggers: open prepay window approach, business-plan execution complete, partner buyout, cash-out at improved value, or change in capital structure.
What is the difference between a cash-out refi and a rate-and-term refi on a CRE loan?
Rate-and-term: new loan at approximately the existing balance with new rate, term, and amortization. Lender scrutiny is lower; closing is faster.
Should I do a supplemental loan or a full refinance on my agency multifamily?
Agency supplemental loans avoid prepay on the senior; full refinance recovers more equity but pays prepay.
How long does a CRE refinance take from decision to funding?
Routine CRE refinance: 60 to 90 days bridge, 90 to 120 days bank perm or agency, 75 to 105 days CMBS, 6 to 9 months HUD. Plan to start the lender comparison 90 to 120.
Glossary
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