Mid-Construction Refinancing: Opportunity Or Plunge Into The Void?

Construction loans typically do not get refinanced before a project is completed. A construction loan is short-term in nature and both the lender and its customer expect that they will stay on the project until the project is complete, following the ground rules and administrative framework they negotiate. There are some occasions, however, where mid-construction refinancing makes sense, particularly in the current environment where financing conditions are improving and more lenders are willing to finance projects in desirable markets (such as New York City) on better terms than were available a short time ago. Some projects that are currently underway were started when the markets were tighter, and are now better able to attract loans on more favorable terms.