The number the owner believes in may not be the number the lender uses. Owners…
Will Your Refinance Work Under Today’s Lender Math?
Most owners ask the wrong refinance question.
They ask: What is my property worth?
The better question is: What debt will the property support under today’s lender math?
A property can be worth more and still refinance worse.
Why? Higher rates. Higher insurance. Higher taxes. Lower DSCR. More reserves. More capex scrutiny. Tighter documentation standards.
The asset may be fine. The loan math may not be.
Before asking for terms, know whether the refinance is ready, pressured, exposed, fixable, or likely to require cash in.
The worst time to discover the refinance gap is when the lender finds it first.