Commercial Loan Maturing in 2027? Start the Refinance Conversation Now

If you own a Texas commercial or investment property with a loan that matures in the first half of 2027, the best time to start working on the takeout is now. Not in March. Not when the servicer sends the payoff letter.

You will not be alone in the market. The Mortgage Bankers Association reported in February that $875 billion of the $5.0 trillion in outstanding commercial and multifamily mortgages, or 17%, was scheduled to mature in 2026. That was down 9% from the $957 billion scheduled for 2025. A lot of owners are refinancing, extending, or selling at the same time, and lenders are choosing which requests to spend time on. A complete, early file gets attention. A rushed one gets a cautious quote or none.

Know Your Real Starting Point

Before you talk to anyone about a new loan, rebuild the numbers on the property as it stands today, not as it looked when you bought it.

• Current value, honestly estimated. What would a buyer pay today based on in-place income and recent sales nearby? A new lender will order its own valuation, and the gap between your number and theirs is the most common surprise in a refinance.
• Trailing income and expenses. Pull the last 12 months of actual rent collections and operating expenses. Insurance and property taxes deserve a close look, because both feed directly into what a lender believes the property can carry.
• The payoff amount. Get the exact balance at maturity, plus any exit fees, extension terms, or prepayment provisions in your current note.
• The gap. Subtract a conservative new loan amount from the payoff. If the result is positive, you have a cash-in refinance, and you need to know now where that equity comes from.

That last line decides most of the strategy. A property that refinances comfortably has many options. A property with a gap needs a plan for closing it, and plans take time.

The Main Paths and When Each Fits

There is no single right answer. The right path depends on the property's condition, its income, and how much time you have.

Extension with your current lender. If your note includes extension options, read the conditions closely. Many are tied to performance tests or fees. An extension can buy time, but it rarely improves terms, and it can simply move the same problem down the road.

Permanent refinance. For a stabilized property with steady occupancy and clean financials, a longer-term loan is often the goal. For smaller residential rentals, a DSCR loan qualifies the property on its rental income rather than your personal income. Either way, the property has to support the payment on its own numbers.

Bridge financing. When a property is in transition, such as lease-up after renovation, a vacancy you are working to fill, or a business plan that is not finished, a bridge loan can retire the maturing debt and give the plan time to work. Bridge capital is shorter-term and usually costs more than permanent debt. It works best with a clear, believable exit, whether that is a permanent refinance or a sale. Our overview of Texas commercial bridge financing covers how these are typically structured.

Partial paydown or added equity. If the gap is real, bringing cash or a capital partner to the table may be the cleanest answer. Knowing this early gives you time to raise it on your terms.

Sale. Sometimes the honest answer is that the property has done its job. A planned sale with time to market usually beats a forced one.

What a Strong Refinance File Looks Like

Private lenders and capital sources move faster on files that answer their questions before they ask. Have these ready:

1. A current rent roll and the trailing 12-month operating statement.
2. Copies of leases for commercial tenants, with any upcoming expirations flagged.
3. A summary of capital improvements made since acquisition, with costs.
4. The current loan documents, payoff estimate, and maturity date.
5. A short written business plan: what the property is today, what it will be, and how the new loan gets repaid.
6. Sponsor information, including your real estate experience and a current statement of liquidity.
7. Insurance declarations and the most recent property tax statement.

Gaps in this list do not end a deal, but they slow it down and they shape the terms. A lender who has to guess will price in the guessing.

Timing matters more than most owners expect

Third-party reports, valuation, title, and lender review all take time, and the calendar runs faster around the holidays. Starting six or more months ahead gives you room to compare more than one option and to walk away from a bad one. Starting 60 days out often leaves you taking whatever is available, or paying for an extension you did not need.

Put the Plan on Paper This Month

Write down three numbers: your maturity date, your payoff amount, and a conservative estimate of what the property could borrow today. If the gap is zero or positive and the maturity is more than six months out, you have time to shop the loan properly. If either is not true, the work starts now.

PLG Capital structures and places financing for Texas investors and developers through a network of private lenders. If you have a loan coming due and want a clear read on the realistic paths, send us the scenario and we will tell you what the file needs and where it is likely to fit.