Commercial Loan Rates - Mortgage
custom commercial loan mortgage rate quote
Commercial loan and mortgage
interest rates are not as easily quoted as residential. They are not 'cookie
cutter" like quotes on residential financing. There are many aspects taken into
consideration when quoting commercial loan rates on mortgages. Some of the
things considered are:
qualifications that are documentable. IE: Personal Financial
Statements, Tax Returns etc.
Can't document? Stated Income
and No Doc programs are available usually at higher commercial loan mortgage
The type of property. Usually
classified as "tiers". Example: apartments are usually a tier 1 (lower
risk). Bar/Lounges are usually a tier 4 (higher risk). The higher the risk,
the higher the return for the lender.
Borrowers credit scores.
Obviously, the lower the score the higher the risk. The higher the risk the
higher the return.
Term of the loan. Usually the
longer the lender has their money out, the higher the price.
Fixed or Adjustable. The
lender will give the borrower a better price when they are willing to share
in the risk of market fluctuations.
The property's financial
records. If purchasing or refinancing an income producing property, the
property's financial and income / expense history plays a huge part in
determining the financing terms.
Pre payment penalties and
"lockouts" are the norm in this type financing. They can be negotiated down
or eliminated by paying "points" or accepting slightly higher rates.
* Loan fees
may vary from program to program. Any and all fees are standard
and customary. No Junk Fees. If you would like a quote on
your specific requirements please submit our Quick
Application at no cost or obligation. You'll hear back from us
Loan fees are different on this
type financing. There may be "due diligence" fees, environmental impact research
fees, industry specific inspection and analysis. These are examples of fees that
may be incurred in addition to the normal appraisal, title, origination,
recording, processing and other standard and customary fees. Unlike residential
financing, this financing usually requires an up-front fee to the lender for the
appraisal (from $1500 to $3500 depending on property type) and possibly a
deposit from some lenders.
* We offer many, many more
programs than we can update on our web site every day. Also, each program above
has several pricing options.
Examples of Common Commercial Mortgage Loan Interest Rates, Indices and Programs
Prime (index) + X% (margin
usually from 1 - 3.5%): The prime rate is published in nearly all daily
papers. Just add the margin to the index to get the fully indexed or note
T-Bill index (usually the 5
yr note) + margin. Again this index is published in most papers.
2 - 3 - 5 - 7 - 10 year fixed
programs offers 20 to 30 year amortization for low payments, yet lower
pricing than a longer term. These programs may have a balloon payment at the
end of the fixed term or may covert to an ARM program at the end of the
fixed time frame.
15 - 25 to 30 fully
amortizing fixed interest. Financing programs
of this type are typically the most expensive.
We have access to numerous
commercial wholesale lenders that offer more programs and pricing structures
than could possibly be listed in their entirety on this or any other website.
Even if we could list them all, you would be more confused than you were before
you started. We can counsel you on the program that is right for you and your
financial goals. If one direct lender can't perform then we go to the one that
can. We shop for the very best commercial loan interest rates and mortgages available in
the market. You fill out one very short commercial loan quick-application. We then analyze the numerous programs
that may be appropriate for you and you special needs or objectives.
transaction is structured to match your specific business objectives, risk
profile and market challenges. We will work with you and your organization
throughout the entire financing process. Additionally, we offer constant
communication and personal service throughout the entire process.
Apartment Multi Family
Auto Repair Gas
Campgrounds - Parks - RV
Car Wash Carwashs
Child Day Care
Land - Construction
Mobile Home Park - MHP
Office Warehouse Building
Restaurant / Bar