RATES, COSTS & REQUIREMENTS
A rate is one number.
A loan has many moving parts.
Commercial mortgage rates depend on the transaction and market conditions. This page explains how to compare proposals; it does not advertise a current rate or lender quote.
STRAIGHT ANSWERS
Before the next step.
What are current commercial mortgage rates?
Request a dated proposal for the specific property and borrower. Compare fixed or variable pricing, the index and spread if applicable, rate-lock terms, fees, amortization, loan maturity, and prepayment costs. A rate shown without those details is not a complete comparison.
How much down payment does a commercial loan require?
There is no single percentage for all programs. Lender leverage limits, value, cash flow, borrower profile, and property type influence the equity needed. Also budget for costs, reserves, repairs, and liquidity after closing.
What DSCR and LTV do I need?
Requirements vary. LTV compares the loan with the value used by the lender. DSCR measures repayment coverage using the lender’s income and payment definitions. Meeting one ratio does not necessarily satisfy the other or establish approval.
Why can a loan have a 25-year amortization and a shorter term?
Amortization determines how principal is repaid through scheduled payments. The loan term determines when the remaining balance comes due. A shorter term can leave a balloon balance requiring repayment, sale, or refinancing; future refinancing is not guaranteed.
Which costs should I compare?
Ask for lender and broker fees, appraisal and other third-party reports, legal and title costs, escrows, reserves, extension charges, and any prepayment provisions. Separate upfront cash needs from recurring payments.
What do recourse, yield maintenance, and defeasance mean?
Recourse concerns the borrower’s or guarantor’s responsibility beyond collateral. Yield maintenance and defeasance are different contractual mechanisms that can affect an early payoff or collateral release. Obtain a transaction-specific explanation and calculation before signing.
How long does commercial financing take?
Timing depends on documentation, lender review, title, valuation, environmental or property reports, legal work, and program requirements. Ask for milestones and contingencies rather than relying on an unverified funding promise.
Start with a transparent worksheet.
Try illustrative LTV and DSCR calculations without submitting contact information.
Program information checked September 30, 2026. Sources: FDIC commercial real estate guidance. Current rules and lender requirements apply.
LET’S LOOK AT THE DETAILS
Bring us the property.
And the questions.
Start with the goal, the timing, and the financing need.