Have you bought or are you going to buy commercial real estate? Take appreciate our Commercial Loan Calculator your monthly payments.
The calculator is designed for commercial real estate loans that repricing have . This means that you pay a fixed interest rate for a loan for a certain period, at which point the interest rate can change based on market conditions. The Commercial Loan Calculator is your monthly payments before and after the interest rate adjustment, and the amount of money you value payable over the term of the loan.
, at least in business for 3 years? Do you have good credit and 15% down? Talk to qualify 7a loans as commercial real estate for a long-term SBA with SmartBiz.
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For a free consultation Request call with SmartBiz, recommended commercial real estate lender. To learn more about how to obtain a commercial real estate loan, you can also on commercial real estate loans and check-out: to get as a loan for income generating property or in our article on SBA 504 loans
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How the commercial Loan Calculator Works
commercial real estate loans (often just called commercial loans) occupy a unique place among the business loan. They are secured by real estate, the high value as collateral. For this reason, commercial credit terms are usually quite favorable for borrowers with interest rates currently between 4-6% and 10-20 year terms from.
This Commercial Loan Calculator is designed for commercial real estate loans with an interest rate reset. In this common type of commercial loan, you can pay a fixed rate for a certain number of years. At this time, your interest rate change based on market conditions. The new interest rate may be higher than, lower than or equal to your initial interest rate. The reset date and how the new interest rate will be determined as indicated in your loan documents.
Another type of commercial real estate loan is called a balloon loan. In a balloon loan, make relatively low monthly payments throughout the term of the loan, and at the end you pay the balance in a large lump sum. This host is not designed for the balloon loan (for a balloon loan calculator, Click ).
Based on the information you provide, our calculator will estimate what your monthly payments will be before and after the rate reset, as well as what you pay over the term of the loan , Here's how to use the Commercial Loan Calculator.
Inputs
Amount Loan of . Insert here the principal amount of the loan
Origination Fee: Sometimes lenders charge an up-front fee for processing a loan application. This fee is deducted from the loan before the money is paid to you. This is called an origination fee. Identify the origination fee in the computer film with the bar to zero if no origination fee is
original interest rate :. Select the initial interest rate of the loan.
term of the loan: Identify the repayment term of the loan.
Up interest rate restructure Year: This is the number of years until the interest rate is reset. The reset date is displayed in your Letter of Interest or loan agreement. If you are unsure, ask your lender
rate at reset :. Identify what the interest rate after the reset. The interest rate is usually coupled to a market interest rate. Again, as the new interest rate should be calculated appears in your letter of interest or loan agreement. If you are unsure of what will be the rate, ask your lender.
outputs
original monthly payment .: The initial monthly payment is the estimated monthly payment before the reset date
Monthly payment after reset: This is the estimated monthly payment after the reset date. This may be higher than, less than or equal to the original monthly payment. Right now, interest rates rise, so you can expect to increase the monthly payment after the reset.
total payment amount over the life of the loan: Commercial loans are amortizing loans, which means the principal and interest will be over the term to down pay the loan until the balance is zero. The Commercial Loan Calculator will show how much you. Total repay (principal + interest) over the term of the loan
Need Help a commercial loan procurement?
There lender thousands of commercial real estate are out there, including banks, hard money lenders and online lenders. Each lender differ significantly with respect to the qualification requirements, costs and repayment terms, but in general, you need to qualify the commercial for a loan following:
- Personal credit score above 680 (check your credit score for free here ).
- deposit of 10-20 percent.
- ratio debt service coverage (DSCR) of at least 1.25. DSCR compares your annual earnings (private and business income after expenses are accounted for) to your annual debt and interest payments. For example, if your annual net income of $ 100,000, and your annual debt and interest payments (for debt) are $ 50,000 then DSCR is 2.
If you want more commercial real estate loans learn to read our detailed article. If you are to buy a property to operate your own business from, have been in business 3+ years, have a good credit score and 15% down payment, consider talking with SmartBiz. You can prequalify 7a loans for commercial real estate in a few minutes for a long-term SBA.
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Bottom Line
a commercial real estate loan is a great investment in your business and in your future , With our Commercial Loan Calculator you can plan ahead. Find your monthly payments, and years when the interest rate is
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