Commercial Refinancing Guides & Capital | Thorne CRE

Commercial refinancing is the process of replacing an existing commercial property loan with a new debt agreement to secure favorable interest rates, extract accumulated equity, or adjust debt repayment schedules. Commercial real estate borrowers leverage refinance capital to reduce debt service obligations, transition out of short-term debt, and support portfolio expansion.

When structuring a refinance, lenders evaluate key metrics like DSCR loans, property cash flows using the NOI formula for commercial real estate, and liability preferences such as recourse vs nonrecourse commercial loans. Borrowers transitioning from short-term assets often combine temporary bridge financing strategies with permanent exit options, while leveraging guidelines from regulatory bodies like the Federal Reserve and government programs through the U.S. Small Business Administration.