Is 8.75% interest on a commercial loan high?

Jul 29, 2009 in Commercial Mortgage FAQ

Are there commercial lenders who will go lower?
This is my first commercial property. I’m starting to get into it. I’ve called another broker to see if I could get another rate.

My credit is excellent! Thank you!!!

Like this post? Subscribe to my RSS feed and get loads more!

5 comments

godged on July 29, 2009 at 9:40 am

I know people that recently received a commercial loan at 12%, so I think you are doing just fine.
ZinaRae on July 29, 2009 at 9:40 am

Unsecured? Secured? Even if it’s a secured loan the rate for commercial is very good. You have awesome credit if it’s a commercial loan.
AnOrdinaryGuy on July 29, 2009 at 9:40 am

I’d say it’s a decent rate, but the rates depend on your credit, so it’s hard to say. Remember that business loans are not regulated the way consumer loans are and might not be regulated at all. For example, most business loans are not covered by state usury laws so the lender can charge any interest rate he wants.
littlelanasue on July 29, 2009 at 9:40 am

Commercial loans are usally 2 pts above prime, and prime right now is 7.5. So, if you can get 8.75, that’s a steal!
Adoptive Father on July 29, 2009 at 9:40 am

Obviously there are many specifics to consider. Wall Street Journal Prime is now 8.25%. Without more info, this actually sounds like a good deal.

New Financing Programs

Bond Financing Program
Click Here

Healthcare Facilities Financing
Click Here

Commercial Financing Programs

Here you can find our most current commercial financing programs

> $1 million to $10 million

> Acquisitions, Refis, Construction, Developments, etc.

Click Here

Discounted Pay-Off Loan Financing

Does your lender need to eliminate commercial loans, performing or non-performing, to free up equity or to avoid regulatory issues (and are willing to discount your payoff amount)?

Does the FDIC want your loan off the books, and are willing to accept a reduced payoff amount?

If your lender is interested in a reduced payoff to clear your loan package, we work with a number of sources eager to finance such projects that offer viable exit strategies. These sources participate directly in negotiations with your lender.

100% Construction Joint Venture Equity Financing

Our funding source provides 100% joint venture equity financing and cover 100% of the total project costs including hard and soft costs, land acquisition and project development. They allow the developer to recover most, if not all, of the monies already invested in the project, including monies spent during pre-development.

Click Here

Introducing The New SBA 504 Loan Lowest Rate In 30 Years!

> Low Down Payment (Only 10%!)

> Long Repayment Terms

> Lower Monthly Payments

> Frees Cash Flow To Expand Business

> Many Rate Options (Including Long-Term Fixed)

> Limited Refinancing Of Existing Debt

> First and Second Mortgages

> Guarantee Fees Temporarily Waived

> Fees Set By CDC

> Prescreens At No Charge

We're Funding These SBA 504s Nationwide

Does Your Business Qualify?

*Rates subject to change, not all qualify

Multi-Family Rates Drop!

> 5, 7 & 10 Year Fixed Rates Starting Mid 5% Range

> Loans $750,000 to $5 Million

> Up to 80% LTV

> 25-30 Year Amortization

> Minimum FICO 680

> Capped ARM Starts At 4.25% - Lifetime Cap 7.25%

> Purchase, Refinance, and Cash-Outs Available

We're Funding These Multi-Family Loans Nationwide

Does Your Business Qualify?

*Rates subject to change, not all qualify

Aspen Financial Group