This was a cashout refinance loan request from a repeat client, with whom we have financed multiple properties. The client was right in the middle of doing an SBA loan for a Franchise they invested in and was in need to get some cash out from this asset to be used towards required Tenant Improvements for the new business venture.
The transaction was being originated right in the middle of the COVID crisis and as such Lenders original offers were constantly changing as well as their guidelines. We had to filter out multiple lenders until we found one that was the best fit to meet the clients goals.
We decided to go directly into an adjustable loan that allowed for maximum loan dollars. Although we initially were seeking at least a 5 year fixed it was determined that taking the ARM program achieved the highest loan amount and at this time largest amount of cashout was the main objective, and taking the arm reduced the current rate by almost 3 percent.