Commercial Mortgage Rates
Below you will find current commercial mortgage rates as we see them in the marketplace when communicating with the lender and lending community about how each borrower can finance or refinance a loan. These are to be used as guidelines and are not an offer to lend. These rates can also vary across different banks, lines of credit, broker networks, debt types, repayment options, loan term options and other factors that affect commercial loans. As you know, every deal is different. Approval, underwriting, borrowing and monthly payments can all differ widely. Without fully insuring a property and sponsor, it is impossible to know what fixed rates or variable rate options you will get on your loan. As a result, a fixed rate loan can be lower or higher than the rates posted here. Below, we have provided rate ranges for real estate loans based on current index rates and current credit spreads that we see in the marketplace. As a reminder– commercial mortgage loans are constantly evolving with the market, and commercial real estate loans can differ from day to day when it comes to your mortgage payment, mortgage lender, and specific loan options for your real estate loan. Keep that in mind when seeking funding.
We offer more loan terms than those provided below, however these represent the most common loan structures. Each of these quotes are based on a theoretical commercial mortgage at 75% ltv. A lower loan to value ratio for each scenario would, in theory, lower each rate.
Current Commercial Mortgage Rates
|Current Index Rates|
|1 month LIBOR||2.37%|
|Multifamily Fixed Rate Loans||Low Range||High Range|
|Commercial Fixed Rate Loans||Low Range||High Range|
|Bridge Loan Rates|
These posted commercial mortgages rates apply to all commercial real estate property types that we service. Below is a list of current property types that are a fit for our programs;
- Multifamily & Apartment buildings
- Retail centers
- Office Buildings
- Hotels & motels
- Industrial property
- Self Storage facilities
- Mobile home parks
Clopton Capital is a nationwide commercial real estate capital company and mortgage banking firm. We specialize in commercial mortgages, commercial bridge loans, and real estate private equity for transaction sizes ranges from $1 to $40 million. The commercial mortgage lenders at our company bring long lasting relationships with capital providers that give our clients deep insight and superior execution.
Commercial Mortgage Rate Guidance
Interest rate forward guidance is difficult to give for all people that qualify. There are dozens of factors that affect competitive market interest rates every minute, including refinancing terms, closing costs, previous line of credit requests, the amount to borrow, the individual mortgage broker, loan application process, and the buyer themselves. Accurately taking into account each factor to give exact guidance as to where rates are going is not practical for your investing and mortgage lending future. However there there are several main factors that you can take into account to get a feel for the general direction of rate movement over the long term.
Inflation – Interest rates are very sensitive to inflation data in the economy because it determines the cost of stagnant money in the commercial loan market. If inflation is 2% year of year, and you are not earning any interest on a cash deposit, essentially you are losing 2% of the value of your money year of year. To account for this, principal and interest rates rise and fall with inflation to ensure that what buyers invest always realizes a positive return. The higher the inflation in the system, the higher rates will be. The FED is also a main driver in short term rates as their mandate is to control inflation in the economy. As the FED sees higher inflation, they will engage in monetary actions to control inflation, typically by raising short term interest rates for commercial lending.
GDP & Economic Output – Gross domestic product readings are another main driver of interest rates. Higher perceived growth can lead to higher interest rates as it pressures inflation and demand for capital. As the economy expands, upward pressure it put on interest rates, as it contracts, the opposite action is seen and you’ll see low interest rates.
Employment data – Payroll and employment data is a main driver of interest rates in our economy. A tight labor market (low unemployment) is seen to lead it an increase in hourly wages, which could lead to inflation. This would put upward pressure on interest rates across the yield curve. As such the relationship is low unemployment and higher payroll numbers will put upward pressure on interest rates. higher unemployment and lower payroll wage numbers will lead to lower rates.
Commercial Mortgage Rate Spreads – When it comes to commercial mortgage rates, the spread over the index is another consideration that will affect the interest rate on your loan. Spreads are determined by several factors depending on what market you are in, however generally spread are determined by supply/demand for capital and risk. The higher the supply of capital the lower spreads will be (lower coupon rate). Alternatively the higher the demand for capital the higher spreads will be (higher coupon rate). As for risk, the higher the perceived risk of any transaction, the higher the spread over the index will be, raising the all in coupon rate of the deal.
Understanding these factors and how they interact will help you find the best commercial mortgage loan rates. The good news is that you’re not alone. Trusting commercial lenders in our dependable network will ensure that the commercial property you are purchasing will be a worthwhile acquisition. Regardless of your credit history, we’ll do our best to work with you to secure a business loan in the competitive mortgage market. We want your real estate investment to pay off, so we’ll do our best to provide working capital and business loans for the best loan servicing in the nation.
Commercial property owners nationwide have access to construction financing, office building funding, and equity line of credit options as well as the best mortgage rates on the market. Whether you’re looking for a fixed mortgage or variable rate mortgage, we’ll help you obtain the commercial real estate properties you’re seeking.
For Current Commercial Mortgage Rates - Contact Us - 866-647-1650
We’re able to quickly provide commercial mortgage rates for any loan inquiry when given the loan amount, property type, loan to value, and desired fixed period. To get a soft quote on any commercial mortgage, simply fill out the contact form.
When requesting your quote, be sure to include the following information:
Property type and location
Desired fixed period and amortization