AskTheBusinessLawyer.com; Jagdeep Dayal, Senior VP of Wells Fargo. VIDEO DESCRIPTION: Just like in the residential sector, it is a great time to

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1 WELLS FARGO BUSINESS INSIGHT SERIES VIDEO TITLE: Refinancing commercial property MODERATOR: Rich Sloan, StartupNation EXPERT: Nina Kaufman, Esq., founder and president, AskTheBusinessLawyer.com; Jagdeep Dayal, Senior VP of Wells Fargo Business Direct. VIDEO DESCRIPTION: Just like in the residential sector, it is a great time to refinance your commercial mortgage. Gain insight into the types of mortgages available and considerations owners should have. RECORDING DATE: May 29, 2009 [Music plays.] RICH With residential property, homeowners could cut costs by refinancing. Is this a strategy that is viable in the commercial sector? JAGDEEP Absolutely. And as Brad said earlier, the interest rates are at an historic low, and just like in the residential properties, this is a great time to refinance your mortgage. Now there are a couple of things that business owners and investment owners are to consider: what kind of rates, whether you would want fixed rates or

Gain insight into the types of mortgages available and considerations owners should have. RECORDING DATE: May 29, 2009 [Music plays.

2 adjustable rate mortgages and what is the cost to refinance. But it is absolutely a great time to be refinancing a mortgage if you can. Okay, and so can you break down a little bit about the options Sure. adjustable versus fixed? Absolutely. Now commercial rates traditionally are always higher than what you see in residential mortgages. So as an example, adjustment rate mortgages will typically be at about 5 percent or slightly higher, and fixed rates will be at 7 percent or higher, so they always run higher than residential mortgages, still at historic lows, but great. So now, how does a business owner or investment owner decide, What do I need? Well, a fixed rate loan very similar to what Brad was talking about is fixed for the term of the loan. So if you have a 5-, 10- or 15-year term commercial loan, that rate is fixed whereas on an adjustable rate loan, typically that rate will adjust every year. So if you own a prime-based mortgage, chances are at the end of the year, the mortgage amount will adjust as prime changes. Now this is

Now commercial rates traditionally are always higher than what you see in residential mortgages.

3 That s the floating terminology. That s the floating terminology. And so when prime changes in a rising interest rate environment, that can be detrimental to a business owner because they are suddenly starting to see increase in costs for the mortgages. So how do you know which is for who and who is for which? Well, very similar to what Brad talked about in the residential market, you know, if you are a business owner that have a very good understanding of your business s liability, that cash flow generation capability for the next three to five years, fixed rates is the way to go. That is clearly the best outcome for the business owner. Now on the other hand, we all recognize that businesses are stressed in today s economy and floating rates do provide the benefit of much lower mortgage payments. And so they become a very good tool or a very important tool potentially for some business owners to be able to manage shortterm cash flow needs. Just keep in mind that almost all commercial mortgages come with prepayment penalties, and so you have to factor that, factor that into your decision and the costs that you pay to refinance.

So how do you know which is for who and who is for which?

4 So, Jagdeep, your bottom line on this. Bottom line, it s still a great time to refinance. Go talk to your local banker about how you can get your refinancing done. Very consistent with what you said, Brad. [Music plays.] Discover more ideas and solutions for your business at: For more information, talk to a Wells Fargo banker by calling: WELLS, ext. 130 [End of recording.] VIDEO LINK:

] Discover more ideas and solutions for your business at: www.wellsfargo.

5 Information and views provided through this Business Insight Resource Center are general in nature for your consideration and are not legal, tax, or investment advice. Wells Fargo makes no warranties as to accuracy or completeness of information, does not endorse any non-wells Fargo companies, products, or services described here, and takes no liability for your use of this information. Information and suggestions regarding business risk management and safeguards do not necessarily represent Wells Fargo's business practices or experience. Please contact your own legal, tax, or financial advisors regarding your specific business needs before taking any action based upon this information. Wells Fargo & Company or its affiliates do not provide tax advice. Please see your tax advisor to determine how this information may apply to your own situation. Investment and insurance products: Not Insured by FDIC or any Federal Government Agency May Lose Value Not a Deposit of or Guaranteed by a Bank or Any Bank Affiliate Brokerage products and services are offered through Wells Fargo Advisors. Wells Fargo Advisors is the trade name used by two separate registered brokerdealers: Wells Fargo Advisors, LLC and Wells Fargo Advisors Financial Network, LLC, Members SIPC, non-bank affiliates of Wells Fargo & Company and is intended only for United States residents. WellsTrade is offered through Wells

use of this information. Information and suggestions regarding business risk management and safeguards do not necessarily represent Wells Fargo's business practices or experience.

6 Fargo Advisors, LLC. Wells Fargo Advisors offers insurance products through our affiliated nonbank insurance agencies (California license # and ). Access to the service may be limited, delayed or unavailable during periods of peak demand, market volatility, system upgrades or maintenance, or electronic, communication or system problems, or for other reasons. Wells Fargo Insurance, Inc. is a licensed agency that represents and is compensated by the insurer on the amount of insurance sold. Deposit and loan products offered by Wells Fargo Bank, N.A., Member FDIC Wells Fargo. All rights reserved. NMLSR ID Equal Housing Lender

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EXPERT: Brad Blackwell, Executive VP, Wells Fargo Home Mortgage. VIDEO DESCRIPTION: Refinancing is the best way to save money because

WELLS FARGO BUSINESS INSIGHT SERIES VIDEO TITLE: Benefits of refinancing your mortgage MODERATOR: Rich Sloan, StartupNation EXPERT: Brad Blackwell, Executive VP, Wells Fargo Home Mortgage VIDEO DESCRIPTION: