What are current commerical real estate refinance rates in California?
I'm helping a non profit that I'm on the board for look into re financing our current mortgage, which is a 15 year loan (currently 9 years into it) over a 30 year amortization period at 6.75%. We have over 60% equity in the building we operate out of, make all our revenue from services, and have over $50k in the bank. Looking for a ReFi of $200,000, mainly to lower our interest rate and be proactive about the end of current balloon payment due in 6 years. We're applying to one bank that has offered us 4.75% at a 5yr fixed over 30 year amortization. 

Any advice? It's hard to get a sense of what current rates and terms are. Ideally, we would like a 15/20yr fixed loan, at less than 4%. I've learned that commercial loans are quite different from residential ones, and it's been quite a lot of work pulling all the financials to even begin to apply for this loan and to see if we'll qualify. 

So, does anyone have advice on how to shop around for commercial real estate re fi loans? Or does 4.75% seem decently good?
[{"id": "h2mh9y8", "text": "$200k could be on the smaller side for a commercial debt broker but they\u2019d know where to look, a lot easier than knocking down doors yourself too. Rates for commercial properties below 4% definitely do exist but its completely dependent on the collateral and the sponsor (in this case your non profit)", "replies": [{"id": "h2nbnl1", "text": "thanks, yeah 200k does seem to be on the small side of commercial Re-Fis, but I'll look into it", "replies": [], "depth": 2}], "depth": 1}, {"id": "h2mhvr1", "text": "The new option for low interest rates is a FHA loan of course. But it\u2019s not worth it to you or the lender at $200K unfortunately. There\u2019s like $25K worth of processing fees with it for a loan with any amount. I wouldn\u2019t know off the top of my head, the loan amount is low unfortunately.", "replies": [], "depth": 1}, {"id": "h2mkb7h", "text": "We do multi-family rentals (apartments, mostly) and we loomed into refinance our California properties. We were given 5-year fixed at 3.35% for a 30 year loan. There are a handful of properties with loans ranging from a few million to over 10.\n\nWe shot them some additional numbers this week. I'll get back to you if the numbers change later this week.", "replies": [{"id": "h2nbrh6", "text": "good to know - likely a good bit lower given the size of your loans, but it seems like I should be able to find something lower than our current offer", "replies": [], "depth": 2}], "depth": 1}, {"id": "h2ndwq9", "text": "Non profits are difficult. Be prepared with clean books, top 10 donors, bank statements, et al.\n\nCall a few credit unions in your area. That loan amount might be a good fit for one near to you.", "replies": [{"id": "h2nomgg", "text": "Yep, commercial re-finance for non-profits is this really odd niche that no one seems to really want to touch bc there's likely not that much money to be made from them + their financials are different than reg businesses. Also the fact that we're looking for a commercial re-fi of only $200k, which is small potatoes compared to what most banks offer   \n commercial re-fis on. But, we've already pulled bank statements, cash flows, p&amp;l statements from the past 3 years while applying for this first re-fi. \n\nIt seems like a lot of credit unions don't explicitly offer Re-Fi's for commercial real-estate.", "replies": [{"id": "h2npd5u", "text": "Some really small ones don\u2019t, but there are a ton in CA that offer refis for commercial, and they are usually more receptive to underwriting a non-profit deal. I worked in the CU world for several years on the commercial side. Usually lower fees and rates vs banks. Usually.\n\nCall a few of the larger ones in your area and ask. Loan brokers aren\u2019t worth the fee imo, but that\u2019s just me.", "replies": [{"id": "h2ns0h5", "text": "ah that makes sense, I'll call a few and ask - thanks for the guidance!\n\nalso, perhaps a dumb question, but is there an easier way to find large credit unions than just googling 'large credit unions' near me? lol, the list that comes up doesn't seem great", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "h2orql4", "text": "Lender here: Call your current bank portfolio manager and ask for a market rate decrease due to current interest rates. You\u2019re super high if you\u2019re in the 6% range. As long as you cashflow they can do a rate reduction without much hassle. I did 15 rate reductions last year. That\u2019s the simplest choice. If you\u2019re 9 years in any prepayment penalty should be long gone. If you still have a prepay, bank may say no because they know you won\u2019t leave.", "replies": [{"id": "h2oxtha", "text": "we called our current lender, and they offered to drop us from 6.75 to 5.75, but the balloon payment is still due in 6ish years, so that won't solve anything.\n\nI was able to speak with a couple lenders that do non profits + refi lending on $200k loans though that quoted rates for 10yr fixed/25 amor at 4% &amp; 4.25%, so they all seem to be in about that range. Our current business account bank is Chase, but I haven't been able to get in touch with anyone there despite calling several times + emailing", "replies": [{"id": "h2p07sp", "text": "Dropping the rate 1% will surely bring your monthly and annual payment down. Commercial real estate loans are basically evergreen, meaning they rarely are paid to $0 like a personal mortgage. Why do you want to pay off the loan? When your term ends, you just roll that balloon into a new loan at current market rates. Hopefully it has appreciated at that time and you can tap the equity to grow the non-profit.", "replies": [{"id": "h2p1br2", "text": "true, its a different way of thinking about things that I'm not used to. \n\nwe're a community bike shop though, so there's a pretty hard limit in how much more we can 'grow.' realistically, would only need more money to renovate the building and/or hire someone full time, both of which are quite distant prospectives. Mainly 6.75% seems quite high the financial shape we're in, and we won't be able to make the balloon payment in 6 years time, so was looking to take advantage of low interest rates to help out on both factors", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]