How do I go about this? 40%equity commercial loan 30 yrs @ 4%. and want to reduce monthly payments

[Naveen Desai]

Hi, 

   I have a loan ( commercial) @ 4% with 40% equity built in and remaining payoff about 117K. 

I would like to reduce my interest rate and also reduce monthly payments. Thinking of refi with 5 yr ARM. I know I can pay off the complete loan towards end of 2015.

I can also make additional down payment of that 17K to round off the loan to 100K. 

However, here is the catch.  Just this month onwards, I am no more getting a paycheque and I registered an  S Corp and working through my own company. I will structure to take monthly salaries, but it is not yet in place.

In this situation, how do I get a loan with lower interest than I am paying and reduce my monthly payments on the property.

Property is rented and the rent itself is upto 4 times the possible installment of 100K loan on 5yr term, if I get proper rates.  However not sure if that itself is enough or will the lenders will still look for a regular paycheque.

Additionally, I am closing a 245K loan just this month ( within a year from starting the loan) and not sure if that would bear any impact if I am trying to refi .

Please advise and I would like to go to a lender with best possible strategy. Obviously I dont want to pay origination/closing fees if possible. 

Thanks in advance. 

Naveen. 

[Jon Holdman]

You already have a really good interest rate at 4%. You might get something lower for the short term by accepting a balloon or ARM, but that may bite you down the road.