Commercial Real Estate Loan Rates are normally higher than those of residential mortgage loans.

The most common commercial property loans will have a 5yr fixed interest rate and be amortized for a period of 20 or 25 years.

The large majority of commercial property loans will have fixed periods between 3 and 10 years. This tends to be determined by the source of funds used to make the commercial property loan. Banks will often borrow their money and lend it from the Federal Government with a wholesale cost. Since the Fed Rate has the potential to change every 3 months, banks will try and avoid the risk of their funds costs being greater than the income derived from interest. Loans are usually based on the yields of treasuries, swaps, corporate bonds, or CMBS rates. Loans will usually be either variable or capped.

Call us at (707) 27-TOWER to finance your commercial property loan today!