Question: What is the difference between commercial loans and residnential loans?
The debt coverage ratio of the property is required for the loan approval not the borrower's personal DTI.
Most lenders require DCR to be at least 1.20.
Question: What are the Fees To Close a Commercial Loan?
If you are planning to purchase a commercial property you should have at least $10,000
in your bank account to cover all transaction costs associated with a commercial loan transaction.
Commercial and business loans don’t come cheap and if you never financed a commercial property you
need to know the facts so can be prepared. Here is what you can expect to pay for a commercial tranaction:
- Appraisal fees anywhere from $1,500 to $3,500 or more depending on property type
- Appraisal fee $5,500 for mobile home parks
- 60 day rate lock fee $500 refundable at closing
- Processing fee $200 - $1000
- Underwriting fee $500-$1500+ depending on lender
- Title work cost quoted by title company
- Escrow for taxes and insurance unless LTV is 50% or less
- Three months reserves principle and interest payment showing in a liquid account of borrower
Question: How do you determine the interest rate for my loan?
The interest rates vary by loan size, borrower's credit, and loan to value.
Credit scores below 680 will add .25% to 1.50% to interest rate.
LTV above 80% will add 0.25% to 1.50% to interest rate.
LTV below 80% will deduct 0.25% to 2.00% of interest rate.
This Week's Commercial Loan Rates:
|
Multifamily 5+ / Mixed Use |
| Term |
Rate |
Type |
| 3 Yrs Fixed |
6.20% |
30 Yr Amortization |
| 5 Yrs Fixed |
6.38% |
30 Yr Amortization |
| 7 Yrs Fixed |
6.55% |
30 Yr Amortization |
| 10 Yrs Fixed |
6.49% |
30 yr Amortization |
| 15 Yrs Fixed |
6.57% |
15 yr Amortization |
| 5 Yrs |
6.78% |
Interest only |
| 7 Yrs |
6.95% |
Interest only |
| 10 Yrs |
7.39% |
Interest only |
*This pricing was based on $500,000 Loan amount 80% LTV with good credit
| Term |
Rate |
Type |
| 10 Yrs Fixed |
6.500% |
30 Yr Amortization |
| 15 Yrs Fixed |
6.625% |
15 Yr Amortization |
| 30 Yrs Fixed |
7.350% |
30 Yr Amortization |
| 2 Yrs |
8.720% |
Interest-Only |
| 5 Yrs |
8.125% |
Interest-Only |
| 7 Yrs |
7.680% |
Interest-Only |
| 10 Yrs |
6.650% |
Interest-Only |
*This pricing was based on $1,000,000 Loan amount 100% LTV 1.10 DCR
| Term |
Rate |
Type |
| 3 Yrs Fixed |
6.35% |
30 Yr Amortization |
| 5 Yrs Fixed |
6.42% |
30 Yr Amortization |
| 7 Yrs Fixed |
6.537% |
30 Yr Amortization |
| 10 Yrs Fixed |
6.625% |
30 yr Amortization |
| 15 Yrs Fixed |
6.250% |
15 yr Amortization |
| 5 Yrs |
6.750% |
Interest only |
| 7 Yrs |
6.875% |
Interest only |
| 10 Yrs |
7.13% |
Interest only |
*This pricing was based on $500,000 Loan amount 80% LTV with good credit
100% LTV Commercial Loan? 100% LTV Commercial Loan (click here) available now!
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