San Diego

[chris-will]

Very JV question here about refinancing.

I am VERY new at the real estate game and I'm just now getting through my first few books on it.  From what I've read it seams that a good way to increase your cash-flow on a property is to refinance...is this true?  Can anyone give an example with some actual/hypothetical numbers to help me make sense of this in my head?

[Nanomug]

When interest rates drop refinancing lowers the payment amount.  If someone pays on a mortgage for 15 years and then refinances into another 30 year mortgage then the payment would drop but the costs would increase,

Refinancing or not depends on many factors.   

What gave you the idea that refinancing is a cash flow increaser?

[NielM]

Hi chris-will

Here's a link to Redfin.com's "Home Buying Guide" on Mortgages http://www.redfin.com/home-buying-guide/what-is-a-mortgage Couple paragraphs down you'll find the "Tip!" indentation titled "Calculate your monthly payment". There's a link to mortgage calculators.  Punch in your loan amount and any interest rate to calculate hypothetical payments.  

The side bar is also helpful regarding types of loans, loans costs, etc.  

When you're ready to refinance, make sure to shop around and ask the loan officer for their list of fees.  You can ask about their interest rates; however, a majority of the lenders will have similar interest rates. 

Good luck!  

Niel Mamerto, Redfin Partner Agent - San Diego

[Jasminewilliams]

The refinance program can back mortgage loans of up to $13.75 million for manufacturing companies or $12.5 million for other businesses. The SBA guarantees up to $5.5 million and $5 million for the two categories. Only loans that come due by the end of 2012 are eligible now.The initiative solves some knotty, individual financing problems, but it delivers broader benefits, too.  It gives the commercial real estate market a little more stability by keeping more owners in their buildings.