Understanding the terms of our commercial property mortgage rates calculator
If you’ve used our commercial property mortgage rates calculator, you might have a few questions about what exactly some of the terms actually mean. Don’t worry—you’re not alone. Even the most experienced investors can sometimes have an incomplete understanding of what specific terms mean and how they relate to their loan. Let’s take a quick look at each term and what it means.
- Purchase Price/Current Value: This is either the market value of the property you want to purchase or the price you expect to pay for it.
- LTV: This stands for Loan to Value, and is a ratio that determines how much of the property’s value will be covered by the loan.
- Loan Amount: Combining the first two items will give you your total loan amount.
- Rate: the interest rate that will apply to your loan
- Amortization: How the interest rate of your loan will change over time
- Monthly Payments: How much you’ll pay in monthly mortgage
- Yearly payments: Your annual payment amount
- Net Operating Income: How much you expect the property to earn you
- Cash Flow after Debt Service: How much money will be leftover after paying mortgage debt
- DSCR: cash available to meet interest payments on your loan
- Down Payment: How much up-front cash you can contribute to the purchase
- ROI: return on investment
- Cap Rate: the ratio of net operating income compared to the property’s value
Commercial Mortgage Calculator: How Much Can I Borrow?
This calculator is designed to help you determine how much you can borrow for a commercial mortgage loan. But each situation is different. If you want focused guidance based on your distinct circumstances, contact us for more information.
Use Our Free Commercial Mortgage Calculator, Then Contact Us for More Info
We’re proud to offer this robust commercial property mortgage rates calculator. It’s a powerful tool to help you get started on the journey to understanding commercial lending and how your specific situation will shape up. But there’s much more involved in securing the right loan for you than just punching some numbers into a calculator. At Clopton Capital, we bring decades of commercial lending experience to every borrower’s case that we take on. We take time to get to know your business, your investment needs and your long-term goals. That’s why we’ve been trusted with hundreds of millions of dollars in commercial lending since our founding in 2010.
Whether you’re a new investor or an experienced commercial real estate veteran, Clopton Capital can help you reach your goals. We’re waiting to give you the customized, deeply informed guidance you need. All you have to do is contact us directly, either by calling the number on this page or using the contact form to send a message. We can’t wait to hear from you and find out how we can become your trusted partners in real estate investing.