Get Insider Tips on Best Commercial Mortgage Rates
Factors Influencing Commercial Mortgage Rates
Several factors influence commercial mortgage rates, including the type of property, the borrower's creditworthiness, and the loan amount. Typically, lenders assess the risk associated with the loan by considering the property's location, the borrower's credit score, and the financial health of the business. The loan-to-value ratio (LTV) is another crucial factor; a lower LTV often results in more favorable rates because it indicates a lower risk for the lender1.