How We Structured a $4 Million Mortgage
A complex refinance required more than a traditional single-loan solution. By coordinating a first and second mortgage, we helped the borrower access cash while preserving more competitive first-lien pricing.
The Challenge
The borrower needed to refinance a $3 million first mortgage while accessing additional cash to pay off an unseasoned second mortgage and other liabilities. Combining everything into one cash-out refinance presented a pricing challenge.
The Solution
Rather than combining everything into one loan, I structured two concurrent liens: a $3 million rate-and-term first mortgage and a $1 million cash-out second mortgage. This approach allowed the first lien to retain more competitive pricing while the second lien provided the necessary cash.
The Result
The coordinated financing structure allowed the borrower to refinance the existing first mortgage and access the cash needed to pay off other liabilities, while maintaining more competitive first-lien pricing and achieving a more favorable blended financing outcome.