A 30-year fixed commercial loan is a long-term loan with a fixed payment and interest rate. The advantage of a 30-year fixed commercial loan is that you know exactly what you’re paying for. The disadvantage? It can be quite high. That’s because, in general, short-term loans (such as 15- and 18-year fixed loans) don’t have the same level of protection as longer-term loans.
Still, if you’re looking for a long-term loan for business purposes, 30 year fixed commercial loans are a great choice. In this blog post, we’ll discuss some of the key things you need to know before applying.
Commercial property refinance allows commercial property owners to release their properties and reuse it for other, more secured purposes.
What Is A 30-Year Fixed Commercial Loan?
A 30-year fixed commercial loan is sometimes also referred to as a long-term bank loan or a fixed-for-life loan. Essentially, a 30-year fixed commercial loan is a loan where the borrower promises to pay a set amount of money back to the lender, plus interest, every month for the entire period specified in the loan agreement.
This type of loan is usually applied for by businesses that will be making long-term investments (e.g., purchasing assets or making major renovations) in commercial properties (e.g., office buildings, shopping centers).
Because these types of loans are secured against a specific asset (i.e., the business’s investment in the property), the interest rate is generally fixed for the lifetime of the loan.
If you’re looking for a long-term loan (e.g., for 10 years) and you need a flexible lender, you might consider a 30-year fixed commercial loan.
Who Benefits From A 30-Year Fixed Commercial Loan?
Due to their long duration and the secured assets that they are based on, 30-year fixed commercial loans are generally ideal for the following situations.
As its name suggests, a 30-year fixed commercial loan has a fixed interest rate and payment, which means that the interest and the principal are adjusted every month.
Why Should You As A Borrower Look For A 30-Year Fixed Commercial Loan?
If you’re looking for a long-term loan, it’s best to choose one with a set duration. In general, short-term loans (such as those with a 12- or 15-year term) have higher rates of interest and less protection than longer-term loans.
You should also consider looking for a 30-year fixed commercial loan instead of a floating rate mortgage, whenever possible. This is because, as mentioned above, a 30-year fixed commercial loan offers some level of protection against interest rate changes. A floating rate mortgage, on the other hand, does not.
Refinance. Get Cash-Out.
If you would like to know more about this type of lending and have a transaction that you would like considered, you should complete the short form and let the lender explain your specific options.