Can I refinance my first trust deed loan without pre-paying my SBA loan?
Generally, your first trust deed loan from a bank or other lender has a higher interest rate than the SBA 504 loan. If you decide to refinance this first mortgage, Caprock will subordinate your SBA loan to a straight refinance of your first trust deed loan. Cash-out may be allowed if the proceeds are used for building improvements.
Is my loan assumable?
If you are selling the building, a qualified buyer can assume your loan for a $1,000 assumption fee. The pre-payment penalty does not apply in this instance.
Why is my payment higher than the amount shown on the note?
Your payment includes fees being paid to SBA, Central Servicing Agent (Wells Fargo) and the CDC (Caprock). These fees are adjusted downward at 5-year intervals.
Why is the rate on my loan different than what was estimated during the loan process?
The rate on the loan is determined approximately one week prior to the date the loan is funded and is based on current market conditions, which fluctuate. Typically they follow the trends of treasury rates. The loan is pooled with all of the other 504 loans funded in the same month and sold in the form of debentures.
Can I make additional monthly payments?
No, the Central Servicing Agent can only draft the exact loan amount according to your amortization schedule once a month.