Direct answer
How this refinance option works
A commercial loan maturity refinance replaces the unpaid balloon balance due at the end of a commercial loan term. Because many commercial loans amortize over a longer period than their maturity, owners may owe a substantial balance even after years of scheduled payments.
Start early enough to obtain payoff information, update property financials, order third-party reports and resolve title, insurance or property-condition issues. Waiting until the final weeks can narrow lender options.
The refinance should be sized from today’s NOI and value—not the underwriting used when the old loan closed. Higher insurance, taxes, vacancy or interest rates can change proceeds.
If permanent proceeds cannot cover payoff, alternatives may include additional equity, a smaller cash-out request, loan extension, interim bridge financing or a sale. None is guaranteed.