Calling all bankers/loan officers commercial

lendaddy · 02-09-2005, 11:24 AM

What is the current ballpark rate on a 15YR amm fixed loan on income property at 75% LTV. This is a factory building worth about $700,000. Thanks,

lendaddy · 02-09-2005, 12:06 PM

OK, how about this. Is there a general premium over homestead/residence loan rates? .5% 1%???????

Big Ed · 02-09-2005, 12:41 PM

Small commercial rates tend to suck the big one. It seems to be a gap in the market that lenders would prefer to avoid. Here in MA, I see a 2 point premium over single family owner occupied rates. I'm hearing 7-7.5% for commercial loans right now.

lendaddy · 02-09-2005, 12:43 PM

Quote:

Originally posted by Big Ed
Small commercial rates tend to suck the big one. It seems to be a gap in the market that lenders would prefer to avoid. Here in MA, I see a 2 point premium over single family owner occupied rates. I'm hearing 7-7.5% for commercial loans right now.

Thanks Ed, then my banker isn't humping me. Just sure seems like a big spread! Maybe I'll just claim residence in my factory

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RANDY P · RANDY P's Garage

Majority of the ones that won't beat you to death with questions will be into you 5 points up front as well. That LTV would work though.

I'd check the local classifieds for private money to lend.

rjp

turbo6bar · 02-09-2005, 01:49 PM

Don't deal with commercial, but pay attention to discussions. 7-8% is thrown around a lot. You'll be dinged for being under $1M.

FWIW, I was recently quoted 6.75% for a Non owner-occupied refi @ 30 yr fixed. Going stated income costs me 0.75%. It hurts, but it is the cost of doing bidness. On the other hand, four years ago I would have killed to get money this cheap.