A commercial mortgage calculator is a very handy tool when shopping for a commercial mortgage loan. Whether you are purchasing a new investment property or refinancing an existing commercial mortgage, it is helpful to know how much of a loan you can afford at today’s rates. A commercial mortgage calculator will calculate your new monthly payment. You will be asked to enter the loan amount, number of years, and interest rate. The calculator will calculate your monthly payment for you.
To access Select Commercial’s calculator, please click here.
Many borrowers ask us how commercial mortgage lenders determine rates that they offer commercial mortgage requests. There are many criteria that lenders use when determining rates, but lenders will assess the relative risk of a loan when determining the rate they offer. The lower the risk, the lower the rate. The higher the risk, the higher the rate. It is important to know what factors lenders use when determining relative risk.
– Property location and market. Good quality properties in large metropolitan and suburban areas are considered lower risk than inferior properties and properties in small rural locations.
– Tenant mix. Multi-tenanted properties with good quality tenants and long-term leases are very desirable when financing office and retail properties.
– Stabilized occupancy. Lenders look for properties that have enjoyed high occupancy levels with minimal disruption for the last 2 to 3 years. Properties with vacancies and fluctuating rental histories are considered higher risk.
– Property Condition. Properties in good condition with little deferred maintenance are considered lower risk than properties in need of major capital improvements.
– Leverage. Loan-to-Value is very important in determining risk. A 50% LTV loan will price better than a loan at 80% LTV.
– Borrower Qualifications. Lenders look closely at a borrower or guarantor’s net worth, liquidity, cash flow, credit history and real estate experience in determining overall risk.
If you have a specific transaction that you would like to discuss, please call us at 1-877-548-9454 or click here for a free quote.