What you should know about low Commercial Real Estate Loan rate
Commercial loans refer to the loan provided by a lender for retail, office and industrial freehold for investors and owner occupiers. This loan is aimed at providing the financial support for commercial purposes such as property development, business acquisitions or investment opportunities.
It is natural to expect the most competitive, lowest possible loan rates, but did you know that you can take simple action and drop your loan rates?
Points – your new friends
Say hello to “Points”. Points are a partial payment of your loan amount, a small percentage, that you can choose to pay your lender. Each point equals 1% of your total loan amount. So, if you were to plan a loan of $200,000 each point would be worth $2,000 and paying this or multiples of this, would help to lower the rate of interest for you.
When to opt?
Lowering the rate of interest by paying up points may sound interesting and a smart thing to do, but it may not always benefit you. Unless you plan to occupy the premises for long term, you would not notice the benefit. It would be better for you to continue normal loan rates in case you have a short-term occupancy plans.
There are many options that you must explore when planning a loan, and we are right here to assist you with these major decisions. Taking a loan is a commitment, and when you are making an investment of commercial nature, you deserve to get the best returns, as soon as possible. Our Loan experts are New City Financials would take time to understand your requirements and plans before suggesting the best options to suits you. So, visit us at http://www.newcityfinancial.com or call for more details.