Determining Your Commercial Mortgage Interest Rate

Understandably, one of the first questions potential commercial borrowers ask, is “What will my interest rate be?"   But the final interest rate on your new loan will be based on your past credit history, the loan-to-value (LTV) of the property, and other risk components associated with the agreement.  And before I can provide a valid financial quote I’ll need to work together to build a suitable package for the lender or investor to underwrite. The final rates and terms you receive will be based largely on you – the business owner.

In addition to interest rates there are other factors you should consider if your goal is to obtain the better overall financial package and return on your property as an investment.  For example, the terms of a mortgage loan can be just as important as the interest rate.  Any pre-payment penalties could also affect the overall cost of your mortgage should you wish to sell or refinance the property. So it’s wise to carefully review the covenants, conditions an restrictions that the lender required on the loan.

Now that you understand how commercial rates differ from residential rates, this is the perfect time to contact me to get started on putting together your commercial loan package program.