Commercial loan rates from local banks and credit unions
What rates are you seeing on 5/1 arm loans 25yr amort. My local banker will do 4.95% on a retail center
[{"id": "iammdnc", "text": "As a commercial banker, I have never heard of a 5/1 arm on a commercial loan. That's a 1-4 mortgage product. \n\nMost commercial you'll see right now is probably in the mid 4s and up depending on the borrower and what the loan is for. That rate would be fixed for 60 months and then adjust and remain fixed for the remaining 60 months. \n\nHope this helps....", "replies": [{"id": "iaq9wub", "text": "My existing commercial loan with credit union is 60 months fixed then adjustable every 12 months for the next 60 months based on prime rate (I believe 3.25 floor) + 1yr tbill rate", "replies": [{"id": "iaqak8q", "text": "You can find better deals than that. Most commercial banks (look for community or regional)   will typically have one reprice. \n\nI dont know your financial scenario but this structure is composes 90% of typical CRE loans.\n\nHope this helps.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iammkmc", "text": "Well, there are many other variables they take into account, like cap rate, quality of tenants, occupation, how long it takes to stabilize if tenants leave, and the market. 4.95% nowadays is not terrible for a local retail.", "replies": [], "depth": 1}, {"id": "ianijgz", "text": "I\u2019m also a Commercial mainly CRE Banker at a local community bank in a fast growing \u201cSouthern\u201d state.   I think we are one of the fastest growing banks (locally owned) in the country. I\u2019ve never done a 5/1 but we do 5/5 similar type loans with one 5 year adjustment to the 5 Year Treasury + 2.75%.  I also put an 18 month interest only period to juice the returns as long as I can get to 70% LTV and have some nice reserves upfront or over build them over interest only period.   Our initial 5 year rates are right around 5% +- depending on the deal.  I can get lower for credit tenant stuff.\n\nGood luck", "replies": [], "depth": 1}, {"id": "iap27xv", "text": "We do larger multifamily (&gt;70 units). Rates are about 4.4% for a 30 year 5 year ARM loan.", "replies": [], "depth": 1}]