Today's Commercial Mortgage Rates
Check out our best commercial mortgage rates for December 21, 2024. As of December 21, 2024, the 5 year Treasury is at 4.384% and the 10 year Treasury is at 4.529%.
Commercial Mortgage Rates as of December 21, 2024
| Loan Type | Rate* | LTV |
|---|---|---|
| Multifamily | 5.36% | Up to 80% |
| Commercial Retail | 6.70% | Up to 75% |
| CMBS | 6.03% | Up to 75% |
| NNN Single Tenant | 6.40% | Up to 75% |
| Mobile Home Park | 5.73% | Up to 75% |
| Single Credit Tenant | 6.40% | Up to 75% |
| Owner Occupied | 6.60% | Up to 90% |
| Industrial | 6.70% | Up to 75% |
| Office | 6.70% | Up to 75% |
| Self Storage | 6.70% | Up to 75% |
| Medical | 6.70% | Up to 75% |
| SBA 504 | 6.61% | Up to 90% |
| SBA 7a | 7.50% | Up to 90% |
| Single Use | 7.50% | Up to 75% |
| Hotel | 7.50% | Up to 75% |
| Motel | 7.50% | Up to 75% |
| Bridge | 9.00% | Up to 80% |
What’s going on with commercial mortgage rates as we near the end of 2024?
The Federal Reserve’s Federal Open Markets Committee cut the federal funds rate by 50 basis points at its September 18, 2024, meeting. This was the first rate cut since March 2020, when the Fed began a long series of rate hikes to curb the high rate of inflation. The Fed’s decision shows that they believe that inflation is under control and moving into the 2% range that the Fed has set as its goal. The Federal Reserve took this decisive action to prevent further declines in the labor market. The Fed has further hinted at further cuts at its two remaining meetings in 2024, followed by additional cuts in 2025. This rate cut, along with possible future rate cuts, may create positive investor demand for commercial real estate, and may provide aid for commercial mortgage customers, as well as consumers in general. We must caution, however, that the Federal Reserve cuts affect short term interest rates directly and long-term rates only indirectly. The Prime Rate, which is a short-term rate, dropped from 8.50% to 8.00% with the Fed’s recent action. However, most commercial mortgage rates are based on the 5-, 7-, or 10-year treasury rates, and not the Prime Rate. We have seen these treasury rates actually rise since the Fed took its action. On September 18th, the 10-year treasury was roughly 3.70%. Three weeks later, this rate had jumped to 4.03%. Investors are still concerned about future inflation and are adopting a wait and see attitude.
Learn More About Commercial Mortgage Rates
Some commercial mortgage lenders lock rates at application, some lenders lock rates at commitment, while others lock rates prior to closing. We are currently in the midst of an increasing rate environment. Rates quoted at application may increase dramatically during the loan application progress, if not locked. It is very important to understand your lender’s procedure upfront to avoid potential confusion.
In order for a commercial mortgage lender to issue a firm loan approval, they will want to understand the financial condition of the borrower, as well as the fundamentals of the property. The borrower will be expected to supply his personal financial statement showing total net worth and liquidity. He will also need to provide a schedule of real estate owned demonstrating experience managing similar properties. Lastly, the borrower’s credit scores will needed. For the subject property, lenders will look closely at the current rent roll, operating statements showing income and expenses, copies of all leases, and other pertinent property information.
Commercial mortgage rates are determined by many different factors, including property type, location of the property, loan-to-value ratio, debt service coverage ratio, debt yield, borrower’s net worth, liquidity, credit rating and level of experience. Commercial mortgage lenders look at all of these factors to determine the riskiness of the loan before setting rates. Loans with the lowest risk profile will get the best rates. As the potential risk increases, rates usually increase.
Commercial mortgage loans are viewed differently by lenders than residential loans. Home loan lenders look strictly at the borrower’s income and credit in order to qualify. Commercial mortgage lenders look at the subject property’s rent roll, operating statements, and other factors to determine the cash flow or net income potential. Very strong (low risk) commercial mortgage loans might be priced lower than home loans, while weaker performing properties (higher risk) might be priced higher.
Most commercial mortgage loans today are fixed for 5, 7, or 10 years and come with a 25-30 year amortization schedule. Loans can be recourse (personal guarantee) or non-recourse (no personal guarantee). Commercial mortgage loans typically carry prepayment penalties, whereas residential home loans usually do not. Specific terms will be determined by your lender’s underwriting team after your application is reviewed.
Commercial mortgage lenders typically lend up to 75-80% on an apartment purchase (down payment of 20-25% necessary). On other types of commercial property, commercial mortgage lenders will typically lend up to 70-75% (down payment of 25-30% necessary). An exception is for owner occupied business real estate (such as a business owner buying his own property). Owner/users may qualify for up to 90% LTV financing.
Commercial Mortgage Benefits
Commercial mortgage rates start as low as 5.36% (as of December 21st, 2024)
• A commercial mortgage broker with over 30 years of lending experience
• No upfront application or processing fees
• Simplified application process
• Up to 80% LTV on multifamily, 75% on commercial (90% with SBA)
• Terms and amortizations up to 30 years
• Loans for purchase and refinance, including cash-out
• 24 hour written pre-approvals with no cost and no obligation
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Multifamily Loan Rates - Detailed
For the most accurate and up-to-date information on multifamily rates, rental market trends, and investment opportunities, select your state from the dropdown menu below:
Multifamily Rates Updated December 21st, 2024
| Multifamily Loan Rates Over $6,000,000 | Rate* | Amortization | |
|---|---|---|---|
| 5 Year Fixed | 5.36% | Up to 30 years | |
| 7 Year Fixed | 5.36% | Up to 30 years | |
| 10 Year Fixed | 5.34% | Up to 30 years |
- Tier 2 - 75-80%/1.25x
- Tier 3 - 65%/1.35x
- Tier 4 – 55%/1.55x
| Multifamily Loan Rates Under $6,000,000 | Rates* | Amortization | |
|---|---|---|---|
| 5 Year Fixed | 5.80% | Up to 30 years | |
| 7 Year Fixed | 5.74% | Up to 30 years | |
| 10 Year Fixed | 5.73% | Up to 30 years |
- Tier 2 - 75-80%/1.25x
- Tier 3 - 65%/1.35x
- Tier 4 – 55%/1.55x
Commercial Mortgage Rates - Detailed
For the most accurate and up-to-date information on rates, rental market trends, and investment opportunities, select your state from the dropdown menu below:
Commercial Mortgage Rates Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 3 Year Fixed | 6.59% | Up to 25 years |
| 5 Year Fixed | 6.57% | Up to 25 years |
| 7 Year Fixed | 6.63% | Up to 25 years |
| 10 Year Fixed | 6.70% | Up to 25 years |
CMBS Rates - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 10 Year Fixed | 6.03%-6.60% | Up to 30 years |
NNN Lease - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 3 Year Fixed | 6.29% | Up to 30 years |
| 5 Year Fixed | 6.27% | Up to 30 years |
| 7 Year Fixed | 6.33% | Up to 30 years |
| 10 Year Fixed | 6.40% | Up to 30 years |
Fannie Mae Small Balance Apartment - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.83%-6.60% | Up to 30 years |
| 7 Year Fixed | 5.77%-6.59% | Up to 30 years |
| 10 Year Fixed | 5.73%-6.60% | Up to 30 years |
| 15 Year Fixed | 5.86%-6.77% | 30 years |
| 30 Year Fixed | 5.80%-6.69% | 30 years |
- Tier 2 - 75-80%/1.25x
- Tier 3 - 65%/1.35x
- Tier 4 – 55%/1.55x
Fannie Mae Large Balance Apartment - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 5.39%-6.12% | Up to 30 years |
| 7 Year Fixed | 5.39%-6.14% | Up to 30 years |
| 10 Year Fixed | 5.34%-6.14% | Up to 30 years |
| 15 Year Fixed | 5.56%-6.36% | 30 years |
| 30 Year Fixed | 5.49%-6.25% | 30 years |
- Tier 2 - 75-80%/1.25x
- Tier 3 - 65%/1.35x
- Tier 4 – 55%/1.55x
Freddie Mac Small Balance Apartment - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.04% | Up to 30 years |
| 7 Year Fixed | 6.00% | Up to 30 years |
| 10 Year Fixed | 6.02% | Up to 30 years |
- Tier 2 - 75-80%/1.25x
- Tier 3 - 65%/1.35x
- Tier 4 – 55%/1.55x
Bank Apartment Mortgage - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 5 Year Fixed | 6.25%-6.50% | Up to 30 years |
| 7 Year Fixed | 6.25%-6.50% | Up to 30 years |
| 10 Year Fixed | 6.50%-6.75% | Up to 30 years |
- Tiered pricing from 55% – 80% LTV
- Simplified underwriting for small balance loans
- Loan amounts from $1,500,000 - $10,000,000+ Nationwide
- Loan to value ratios up to 80% on purchases and 75% on refinances
- Cash out refinances are acceptable
- Pricing based on loan-to-value and debt service coverage ratio:
- Tier 2 - 75-80%/1.25x
- Tier 3 - 65%/1.35x
- Tier 4 – 55%/1.55x
- Interest only loans are available
- Step down and yield maintenance prepayment penalties
- Nonrecourse loans are available
CMBS Multifamily - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 10 Year Fixed | 6.03%-6.60% | Up to 30 years |
- Up to 75% LTV
- Loan amounts from $2 million and up
- Loans available for apartment buildings, retail shopping centers, office buildings, warehouses and hospitality
- Loan to value ratios up to 75% on purchases and refinances
- Cash out refinances are acceptable
- Interest only loans are available
- Loans are non-recourse
Multifamily Bridge
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Owner Occupied Commercial Mortgage Rates - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| 3 Year Fixed | 6.49% | Up to 30 years |
| 5 Year Fixed | 6.47% | Up to 30 years |
| 7 Year Fixed | 6.53% | Up to 30 years |
| 10 Year Fixed | 6.60% | Up to 30 years |
Small Business Administration (SBA) - Detailed
Updated December 21st, 2024
| Loan Product | Rate* | Amortization |
|---|---|---|
| Adjustable | 7.50%-9.50% | Up to 25 years |
| 5 Year Fixed | 7.50%-9.50% | Up to 25 years |