Commercial Mortgage Rates
If you are a private investor, a small/middle market real estate entity, or a family office involved in industrial, commercial, and multifamily real estate, Clopton Capital provides current commercial mortgage rates in the marketplace below for your convenience. You’ll find them useful when it comes to negotiating commercial mortgages, bridge loans, construction loans, mezzanine financing, preferred equity, and joint venture real estate.
Current Commercial Mortgage Rates
|1/22/2019||** Updated weekly|
|Current Index Rates|
|1 month LIBOR||2.50%|
|Multifamily Fixed Rate Loans||Low Range||High Range|
|Commercial Fixed Rate Loans||Low Range||High Range|
|Bridge Loan Rates|
Please appreciate that these shown rates are only guidelines and should not be construed as an offer to lend. When reviewing it is important to remember that they reflect variances on numerous levels and may differ by bank, line-of-credit, broker network, debt type, repayment option, and loan term option to name only a few key factors affecting commercial leveraging finality. Every deal is different and differences become even more pronounced as clients go through the process that inevitably covers approval, underwriting and getting the loan fully insured. Until all the latter are completed it is nigh impossible to even know if fixed rates or variable rate options apply – huge deviating items in their own right.
So in summary: our tables reflecting current index rates and spreads apply for “today” as we see them. They should be regarded strictly as a guideline knowing that all differentiating factors, as shown above, can be disruptive and thus create wide variances. Moreover, an underlying assumption of all rates as provided is application to a commercial mortgage at 75% LTV. Naturally, lower LTV generally demands lower rates.
The posted commercial mortgage rates above apply typically to the following real estate categories:
- Multifamily & Apartment buildings
- Retail centers
- Office Buildings
- Hotels & Motels
- Industrial property
- Self Storage facilities
- Mobile home parks
Chicago based Clopton Capital is a national commercial mortgage broker with closed deals topping several $ billion over the last 10 years. Our transactions typically range from $1 million to $40 million. We operate everywhere in the US supported by the most competitive commercial mortgage lenders in the industry with the ability to provide all our clients with on-demand access to the same.
Commercial Mortgage Rate Guidance
We have emphatically underlined above that interest rate forward guidance is practically impossible to demonstrate in a simple table, even if it’s current and up-to-date (as it is). That said there are several key influences that drive the general direction of rate movement over the long term and understanding them will give you better predictability. They are as follows:
Inflation – Inflation data in the economy determines the cost of stagnant money in the commercial loan market. Simply put, if inflation is 2% year on year, any investor earning zero interest on a cash deposit clearly is losing 2% over the same period. Principal and interest rates rise and fall in sympathy with inflation volatility to ensure that lenders realize a positive return. The higher the economic inflation, the higher rates are expected to be. The Fed is the main driver of short-term rates as they exercise their mandate to control the US inflation rate. In so doing, it typically engages in monetary actions like raising short-term interest rates for commercial lending.
GDP – Gross Domestic Product readings are another core driver of interest rates. Higher perceived growth can lead to higher interest rates as it pressures inflation and demand for capital. Conversely, as it contracts, you should see interest rates likewise contract.
Employment data and Payroll – These are compelling drivers of interest rates in our economy. A tight labor market (low unemployment and higher payroll numbers) invariably leads to an increase in hourly wages, seen as inflationary. This would pressure interest rates upwards across the yield curve. On the other side of the coin, higher unemployment and lower payroll wage numbers push rates down.
Commercial Mortgage Rate Spreads – These are, without question, an interest rate influencer. Spreads are determined in the main by supply/demand for capital and risk. As the supply of capital goes up, the lower spreads will be (i.e. a lower coupon rate), and of course, as the demand for capital goes up, the higher spreads will be (i.e. a higher coupon rate). Underlying all this, the higher the perceived risk in any transaction, the higher will be the spread over the index – thus raising the all-in coupon rate related to the deal.
Review Commercial Interest Rates with a Professional Advisor
The one emerging conclusion from all the content above is that interest rate movement and predicting its direction is extremely complex. We recommend putting your trust in a Clopton commercial loan broker, every one of whom has the mandate to ensure that the commercial property you are interfacing gets the best financing terms and rates available – for now and projected into the future.
We are generally able to transcend past credit missteps to secure a viable business loan for you in the prevailing competitive mortgage market. We waste no time in negotiating the best rates from an array of lenders ready to support your project. We cover every US city, town and rural region connecting your partnership, trust, corporation, LLC, Delaware Corporation, or estate – even foreign nationals – to refinancing capital, construction financing, office building funding, and equity lines of credit options as the case may be.
If this resonates with you, contacting us is easy. Start your loan application by calling us today at 866-647-1650 to speak directly to a Clopton Capital Loan Officer or simply fill out the “Contact us” form. Either way, you will soon be on the road to quickly and precisely knowing your options in line with your financial needs.
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