Slash Your Payments Commercial Real Estate Loan Rates Inside
Several factors impact the interest rates on commercial real estate loans:
1. **Creditworthiness**: Lenders assess the borrower's credit score and financial history. A higher credit score often results in lower interest rates1.
2. **Loan-to-Value Ratio (LTV)**: This ratio compares the loan amount to the appraised value of the property. Lower LTV ratios generally lead to better interest rates2.
3. **Market Conditions**: Economic factors such as inflation, Federal Reserve policies, and market demand influence interest rates. Keeping an eye on these conditions can help you time your loan application3.