Commercial Loan Rates, Commercial Mortgage Rates 

We are actively closing commercial mortgages and offer flexible underwriting, great rates, low fees and again we are still closing loans!  Just because your local banks has let you down, doesn't mean we will.  Fill out our pre approval form to get real, meaningful answer.

Take a look at our 25 year FIXED loan program.  It's our smartest loan and boats 90% financing...   Put you loan "to bed" and never worry about it again.  

The rates below are for SBA 7a loans or SBA 504 loans.  SBA loans can go up to 90% loan to value on either purchase or refinance transaction.  These commercial rates are for loan amounts from $400,000 - $12,000,000.  Go here for other related information on SBA loan rates.

Want specific commercial mortgage rates on your transaction?  Fill out our Pre Approval Form now to get started.  Note we have a wide variety of loan programs to work with and are experts at this business.
 

Commercial mortgage rates consist of 1. an index and 2. the margin that the funding bank

New Build, Closed SBA 7a, Buford, GA

Recent Closing  Howell, Michigan

Recent Closing, Refinance  Dallas Tx

charges.  For example. say you were quoted a  2% margin (or 200 basis points) over the 10 Year Treasury.  You would simply add the margin (2%) and the 10 Year Treasuries rate to figure out what your actual or Effective Interest Rate would be.  The margin is where banks make their spread/money.  It is a complicated process for the bank to figure out what they want to charge.  They have to essentially predict the future, taking into account their desired profit, default risk and future volatility of the index that the bank has (on its money), while at the same time still being competitive in order to win deals.

Commercial Loan Rates, Commercial Mortgage Rate  

The most commonly used index behind commercial loan rates, for owner occupied properties, continues to be PRIME, LIBOR, SWAPS and the Treasury Indexes. Margins on top of these indexes typically range from 2% - 4.5%, though for special use and or difficult transactions the margins can be as high as 6% or more. 

Commonly used indexes for investment properties are the Treasuries, LIBOR, and the FHLB seem to becoming more popular.  Margins for investment properties also range widely based on loan amount, strength of tenants, market characteristics, historical cash flow, loan to value and debt coverage ratio's.  

If possible it is best to receive your rate quote in writing and in the form of an index plus margin fashion, rather than just showing the Effective Rate.  Sometimes lenders will simply quote the rate and leave out the margin and index which weakens the borrowers position.  For example, should the underlying index's rate drop during the processing and underwriting of the loan it will be difficult for the borrower to create an argument as to why they should have a reduction in rate - simply because they do not know what the index being used is. Further, rate locks are not that common in the commercial mortgage industry. 

Trying to get a commercial mortgage secured? Fill out our mini commercial loan application to receive your customized commercial loan rate.