Commercial Mortgage Loan Rate | Our Current Updated Commercial Mortgage Loan Rates
Commercial properties are a hot commodity. They represent significant investment potential and a necessary part of running a business. Purchasing a commercial property is one of the smartest choices that you can make, and savvy investors have started seeking out these properties for their portfolio.
Yet few have the capital purchase the entirety of a property, especially with some properties valued at millions of dollars. Like with most property purchases, you take out a loan, and the terms of that loan determine how much you’re able to profit from the property.
The Range of Commercial Mortgage Loan Rates
Commercial mortgage loan rates are subject to change regularly, and can be affected by credit score, LTV, lender’s assessment of risk, and much more. But the ranges tend to fall within fairly specific numbers because, in general, lenders do not provide high risk commercial loans so most borrowers fall into similar ranges. For example, the commercial mortgage loan rate for traditional fixed rate loans is currently:
- 5 Year Loans – 3% to 4%
- 10 Year Loans – 4% to 5%
- 30 Year Loans –5% and Up
These rates are based on dozens of different factors. Indeed, the type of business you plan to open plays a role in the rate as well. Mobile home parks and apartment complexes often have lower rates than religious facilities and golf courses, because the latter two are bigger risks for the lenders.
What to Look for With Your Rate
Because commercial mortgage loan rates are so variable, it’s not about what to expect – it’s about shopping around. The best thing you can do is get rates from multiple lenders, and use that as the baseline for what your rate is likely to be.
While expectations can be valuable, lenders that promise amazing rates may still not follow through with those rates if your property is too risky for them, and lenders that seem to have higher rates may find your loan to be a low enough risk that they can offer you a better rate than your competitors.
If you’re interested in learning more about the available commercial mortgage loan rate that you qualify for, sign up with CRE Lender today. We connect you to hundreds of different lenders and lending options so that you can find out what rates are available to you and what you need to complete the loan. Sign up now.
[salesforce form=”2″]