Understanding Commercial Property Rates
If you’re pursuing a commercial real estate loan, you’ll want to remain informed on current commercial property rates. You’ll want to know how they’ll affect your mortgage, terms, and other elements of the loan itself. It will also make you more equipped to understand your loan and whether an offer from a lender is in line with current competitive market trends.
It’s also important to understand the best times to seek out a commercial property loan. You want to lock in good rates when the market presents them, rather than finding yourself having missed the boat on a great interest rate. So how does the market look right now?
As of late 2018, average commercial real estate loan rates have been dipping toward an all-time low. That means there’s never been a better period to either buy real estate property or initiate a commercial property refinance. If you’ve been considering diving in and seeking a commercial property loan, now may be the perfect time for you.
However, it’s still important to develop an understanding of how commercial building rates are calculated.
What are commercial real estate interest rates?
First, you should know that commercial property rates can depend on various factors. These might include your location and the type of loan you’re pursuing. That said, there are general ranges that can be expected at current market conditions. Use these as a general guide to arm yourself with information before speaking to a lender.
Current interest rates on commercial property can range a great deal, with competitive rates ranging from around 4% to as high as 11%. It can be difficult to pinpoint exactly what determines a rate, as rates can depend on a wide range of factors including:
Credit Score – It’s important to be aware that both your personal credit score and the credit score of your business will be considered. The better your scores, the better chance you have of landing a low rate.
Loan Type – The type of commercial property rates you can expect will depend largely on the type of real estate loan you decide on. Clopton Capital can help you secure the right loan for your business.
Details of the Loan – Loans designed to span longer time periods, for greater loan sizes, generally will result in higher rates. That’s a built-in method your lender uses to protect itself.
Current Market Conditions – While current rates are at an all-time low, the market and economy can fluctuate at any time. That makes it vital to seize an opportunity when conditions are right for your business.
Clopton Capital Can Help You Secure the Best Commercial Property Rate
Don’t leave something as important as your commercial real estate loan to an organization that doesn’t understand your unique needs. You need the services of an experienced, proven lender with a focus on your specific type of loan.
Whether you’re looking to buy or refinance at the lowest commercial property rates, Clopton Capital can help. Contact us today.