If you’ve ever taken out a commercial real estate loan before, you know that you’re typically faced with loan term options of 5, 7 or 10 years.
If you were to choose one of those options, the amortization period for the loan would be longer than its actual term – meaning that you would eventually have to make a hefty balloon payment made up of the remaining loan balance.
But that wouldn’t be the only concern. If you had chosen a short-term loan option with a variable rate, you’d also have to worry about the impact market fluctuation would have on your monthly rate.
In the residential world, borrowers can avoid these issues by choosing a 30-year fixed rate term for their loan. Unfortunately, that option hasn’t been available in the commercial real estate arena.
Whether you’re looking to purchase the office space you’ve been leasing or invest in a multifamily apartment building, you can now lock in a competitive interest rate for the entirety of your loan’s term.
Here are a few reasons why borrowers are choosing a 30-year fixed rate over shorter term alternatives:
If you’re looking for long-term financing to help you either purchase or refinance a commercial property, a solution from Commercial Direct may be just what you need to accomplish your goals.
This is especially true if you’re currently struggling to work with banks. That’s because Commercial Direct solutions are designed to give you more flexibility than traditional lenders are willing to offer.
Review the loan options below to get a better idea of the type of financing solution you could obtain when you partner with Commercial Direct:
If you think a Commercial Direct solution could work for you, then now is a great time to reach out to one of our loan officers. They can give you the information you need to accomplish your financial goals.
Don’t let lender fees catch you off guard – here are all the fees you can expect from submission to closing.
Faster closings and more flexibility are just a couple ways partnering with a direct lender can be beneficial for your next commercial loan.
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