Commercial Property Refinance

I have a second mortgage on my personal property with a 6.50% I want to refinance a commercial property and repay the second mortgage. My first mortgage has a rate of 4.7% My commercial property has a 6.50% This is a rate of 5 years Balloon 5th year is fast approaching. What should I do? Would it be in my best intersest?

Yes, you should refinance if you have the income to support it. It sounds like a good plan, good luck.

It will in all likelihood, be a moot point because "cash out" re-fi is very rare in the current market credit crunch if you do not have substantial equity in your commercial property. You do not provided sufficient information to determine if in fact it is even plausable. What is the balance on your 2nd personal and what is your 1st commercial that is coming due? What is the value of commercial property? Have you 50% or more equity? How much money do you need to pay for your 2nd? Is this your 2nd higher than your 1st?

Refinancing is a non-taxable event, so it may well make sense for you to do depending on the answers to these questions, but remember, once you pay only 2, you no longer have it as a tax deduction (it may not matter if Obama pushes its tax legislation proposed eliminating the tax deduction).

You can discuss with your CPA or if you have one, a financial planner. Good Luck.