Yes, it is possible to choose your commercial mortgage rates. Many banks and lending institutions tend to push a set into the structuring of the loan, but this may not always be beneficial for the business or the individual who is paying back the loan every month. Do not feel that you have to accept the first mortgage rate that they give you. Big banks are notorious for offering terms that are only beneficial to the bank. Commercial loans are not only offered through banks these days. There are a number of professional independent commercial loan companies who have specific expertise in the field of commercial mortgage loans and especially commercial loan refinancing. The rate is the amount of interest that you will be paying back to the lending institution which is based on a percentage of the total loan amount. When applying for a commercial mortgage, you need to know about the different types of c rate that are available to the consumer.
Fixed Commercial Mortgage Rates.
This type of rate is one that is fixed for the entire period of the loan. It does not matter what happens in the economy, or if the banks increase their prime lending rate, a fixed rate will remain constant through. The price of properties in the area as well as in the real estate sector as a whole will have no bearing on the fixed rate. This is a safe choice because it means that you know up front what you will be paying. It does however mean that if interest rates drop dramatically, then you will be stuck paying a lot larger sum than you should be. If you find yourself in this predicament, it may be wise to talk to a professional commercial refinance company for some advice.
Flexible Commercial Mortgage Rates.
This rate is a fluid rate that is dependent on the rate of interest that is being charged by the banks at a particular time. A flexible rate is usually lower lower than the prime lending rate. This is a wise choice to make because it means that you will never be paying more than you have to. The disadvantage of this rate is that if the interest rates rise suddenly, then you may be paying much more than you thought you would.
Conversion Commercial Mortgage Rates.
This type of rate combines the best of both fixed and flexible rates. It starts off as a flexible rate, but can be converted at any point in the loan term to a fixed rate. If the prime lending rate is low then converting to a fixed rate will ensure that when it increases again you will still be paying the lowest rate possible. The best way to decide on the type of mortgage rate that is best for your business is to consult with a professional commercial loan company who will be able to negotiate a new loan or even consolidate an existing one, and offer you the best rate possible.