There are many good reasons to refinance a property or other asset. The status of ownership may have changed due to a marriage or divorce. A better interest rate may be attractive enough to go through the process. In many cases, it is a financial necessity.
Refinancing can happen at all levels of investment. For example, the ongoing redevelopment of Atlanta and its environs has created a surge in big-ticket projects like hotels and exposition space. An existing hotel was just refinanced with a total of more than $83 million.
The loan may be considered an investment, as the strategic value of the property may increase as the capital of Georgia completes more of its signature redevelopment project. Just as it is for homeowners with five-digit or six-digit loans, refinancing can help people maintain their investment in a property when circumstances would otherwise require them to sell.
Nothing is free, and refinancing is no exception. Closing costs may apply because some banks would consider refinancing to be a whole new mortgage, and applicants may need to reapply. The process may also be lengthy, especially when one spouse in a divorcing couple may wish to retain a home on his or her own.
Legal assistance is often a good idea when refinancing is the best option, just as a lawyer is often helpful when buying a property in the first place. An attorney can work with sellers and lenders to be sure that a deal is as fair as legally possible.