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.
Commercial Direct, a division of Silver Hill Funding, LLC, now gives you the option to secure a 30-year fixed rate term for a commercial loan!
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:
- Long-term stability: If you’re a business owner who owns the real estate your business occupies, you likely have to worry about refinancing your mortgage every 5 to 7 years. This can be a burden, especially if the nature of your business makes it difficult to get approved for a loan. Even if securing financing doesn’t present a challenge, the process of refinancing can easily become a distraction you’d prefer to avoid. With a 30-year fixed rate loan, you would only have to go through the financing process one time. Then you could focus on what really matters to you.
- Market fluctuation: If you feel interest rates will rise in the future, you may want to secure the best possible rate right now. Then you could rest assured that your payments would stay low, even in a rising interest rate environment.
- 1-4-unit investment property benefits: If you invest in rental homes, you are likely already familiar with 30-year fixed rate loans. By taking advantage of Commercial Direct’s new loan option, you could secure financing in a similar manner for duplexes, triplexes, or fourplexes. Because these properties are essentially residential, they are a natural fit for a 30-year loan term.
Options available at Commercial Direct
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:
- Loans from $250,000 to $2 million
- Interest rates starting at just 6.50% for 30-year fixed term
- Loan-to-Value (LTV) ratios as high as 80%
- Minimum FICO score: 650
- Reduced documentation options available for investors and business owners
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.
Zack North is the Director of Marketing for Commercial Direct. As a regular contributor to a number of top industry publications, Zack enjoys writing about topics that help investors and business owners approach commercial mortgage financing with confidence.