Best loans to refinance a maturing commercial mortgage

The refinance is a proceeds problem

A maturing loan gets paid off by the new loan plus whatever cash you bring. Each program’s rules decide how big the new loan can be on your net operating income, and with the 10-year Treasury at 4.94% (October 30, 2026), many loans written when rates were lower now refinance into less debt than they owe. That is why the scorecard puts most of its weight on the three rules that drive proceeds. The refinance gap calculator runs your own numbers; the step-by-step guide to a maturing balloon covers timing and the payoff process.

Illustration. A building worth $3,770,000 with $245,000 of net operating income owes $2,850,000 at maturity. Every loan is priced at an illustrative 6.60% so only the program rules differ.

Rule set (illustration)	LTV test	Coverage test	New loan	Versus the payoff
FHA 223(f): 87%, 1.15x, 35-year amortization	$3,279,900	$2,905,500	$2,905,500	$55,500 surplus
Agency small loan: 80%, 1.25x, 30-year	$3,016,000	$2,557,400	$2,557,400	$292,600 short
Illustrative bank: 75%, 1.25x, 25-year	$2,827,500	$2,396,800	$2,396,800	$453,200 short
Illustrative bank: 75%, 1.30x, 20-year	$2,827,500	$2,089,900	$2,089,900	$760,100 short
Illustrative bridge: 70% of value, interest only	$2,639,000	Sized on the plan	$2,639,000	$211,000 short

The spread between the best and worst outcome here is about $815,000 on one building, and none of it comes from the rate. Closing costs come on top. The FHA line leaves out the annual insurance premium, which trims it slightly.

When each kind of refinance wins

Your position	Best fit	Watch for
Months before maturity, stabilized apartments	FHA 223(f), then agency	FHA’s review time; agency yield maintenance on the new loan
Weeks before maturity	Your current bank (extension or new loan), then a bridge lender	Extension fees, a required paydown, recourse
Existing FHA-insured loan	FHA 223(a)(7)	No cash out; the amount is capped by the old principal and income
Low leverage, any income property	Life company or CMBS	Lockout and defeasance on the new loan
Income temporarily down	Bridge loan, then a permanent refinance	Exit fees and a floating rate while you stabilize
Credit or documentation issues	Non-bank DSCR lender, then private lender	Higher rate, prepayment terms

Use the open window on the old loan

Most permanent loans open for prepayment near maturity, and refinancing inside that window avoids the premium entirely:

• Fannie Mae: Typically no premium on a full prepayment from the last calendar day of the fourth month before the maturity month³.
• Freddie Mac: No premium in the final 3 calendar months before scheduled maturity⁴.
• CMBS loans usually open in their final months too. One example from a 2026 conduit pool: 24-month lockout, then defeasance, open the final 7 months⁵. Check your own loan’s schedule; call protection differs loan by loan.

If you must close before the window, price the premium. Yield maintenance falls as Treasury yields rise above your note rate, so an older low-coupon loan may cost little more than its minimum to repay early. The prepayment penalty calculator estimates it.

Gap fillers when the new loan falls short

The scorecard covers senior loans only. When even the best senior loan leaves a shortfall, these fill it, most expensive last:

1. Cash from the sponsor or a partner. The cheapest gap capital there is.
2. A paydown negotiated with the current lender in exchange for an extension, if the property needs time.
3. A supplemental loan later on an agency first mortgage, once income grows: at least 12 months after the first loan; not in its last 3 years⁶ at Freddie Mac.
4. Mezzanine debt or preferred equity behind the new senior loan. Expect the senior lender to approve it and to cap combined leverage.

What lenders check on a maturity refinance

• Why the loan is being refinanced now. A lender reads a maturity under pressure as less leverage on its side. Start early.
• Trailing income, not pro forma. Permanent lenders size on actual collections over the last year.
• Cash-out rules. On a cash-out refinance, Fannie Mae lenders must document how much hard equity remains after the new loan⁷. FHA 223(f) cash-out cap: Greater of 80% LTV or the cost to refinance⁸.
• The next maturity. A five-year balloon solves today’s problem and schedules the next one. Compare terms in the 5, 7 or 10-year guide.

Send Janover Capital the maturity date, payoff and current NOI. We will tell you which lenders can cover it and how much time each needs.