Elusive Commercial Mortgage Rates
Commercial mortgage rates are at historical lows for many transaction structures. For properties less than 50% LTV, borrowers can enjoy rates between 2.25% and 2.9% fixed for 10 years with cashflow strong, steady, and predictable despite the current economic climate. During the pandemic; however, with lower valuations on certain asset classes, meeting lenders’ underwriting requirements to achieve these low rates may be challenging. Nonetheless, Plan B is pretty good with rates between 3.5% to 5.5% for most deals with LTVs up to 75%. And for certain “in-favor” transactions commercial mortgage broker Financial Compound is currently closing loans with commercial real estate lenders fixed for 10 years at 2.85% rate, 25 year amortization up to 80% LTV. At these low rates borrowers may consider consolidating unsecured debt into first mortgages. Financial Compound is able to assist borrowers at all leverage points, property types, and deal structures. With a team of 5 fulltime analysts working together for as long as 15 years we can process your financing request quickly and efficiently.