Commercial Mortgage Rates – Take Advantage of New Lower Rates Before They Rise

The current credit environment remains very challenging for commercial real estate property owners and investors. The state of the economy and the commercial mortgage backed securities (CMBS) market has prompted lenders to tighten standards and be more selective in deciding which deals they will underwrite. But in the midst of this credit crunch, opportunity has emerged for good credit borrowers with quality properties to finance.


Interest rates on commercial mortgages are lower than they have been in a very long time. Loan rates are set based on established interest indexes such as the 10 year US Treasury Bond yield or the 30 day LIBOR. World-wide demand for secure fixed income investments has driven bond rates down, consequently rates lenders charge for their mortgage products are also lower.

Lending parameters have been narrowed and fewer buildings and borrowers can qualify for the most attractive loan programs but for those that do qualify, today’s rates offer a unique opportunity to lock in very favorable financing for as-many-as 10 years into the future.

For instance, our firm is now able to offer 5, 7 & 10 year fixed rates starting at 5.5% to our best credit clients who are buying or refinancing stabilized income producing commercial property. (Rates are subject to change with market and other factors)
Often, loans are amortized over 25 years to keep payments low. – READ THE REST HERE

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