Jan
28
What may be a reasonable interest in a 30 year commercial mortgage ? ?
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What may be a reasonable interest in a 30 year commercial mortgage ? I”ve been offered an initial 3 year fix interest of 7.5 with a 20 % down , Does it sound right?.Can somebody explain how it works please?
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2 Comments
May 18th, 2009 at 5:34 pm
You are getting yourself an ARM.
This is what has gotten this world in a mess of foreclosures.
Although you have fixed for 3 years, it will readjust. Good luck losing everything.
Demand a fixed (fully fixed) loan. They are playing word games with you, do not accept this from them. They are treating you like you are uneducated.
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May 20th, 2009 at 11:58 pm
We are offering a 3/1 ARM at 6.75 so that rate could be a little high. You are probably not going to find a 30 year fixed rate commercial mortgage. There maybe a 20 year fixed out there, but it could be in the mid to high 8’s easy.
What are the fees and other costs? Are there pre-payment penalties or lock-out periods? These can add significantly to the cost of borrowing if you are subject to them.
20% down seems reasonable.
If the loan officer you are working with is not able to answer your questions, find another one. Call some small local banks. I work at one in Cincinnati and small commercial loans are one of our strengths.
Good luck.