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The Benefits of Fixed-Rate, Small-Balance Commercial Mortgages

As a commercial mortgage broker, it’s your job to find your borrowers the commercial mortgages that best fit their needs. However, if you’re working with non-bankable borrowers seeking small-balance financing, finding the right loan can be difficult. While there are certainly options for these borrowers, you should add a portfolio commercial lender who offers fixed and fully-amortizing programs to your product offerings. Here are the benefits of doing so:

A fixed rate means no surprises.

While an adjustable-rate mortgage’s monthly payments might start out low, your borrower’s rate could increase substantially over time depending on the lender’s index and the markets. With a fixed-rate commercial mortgage, your borrower’s monthly payments will not change over time, saving them money and time spent worrying over finances.

Longer terms take the pressure off your borrowers.

For many commercial borrowers, it might seem like hard money loans with short terms are the only option. However, some lenders like APEX Mortgage offer fixed rates for up to 25 years. While the life of the loan might be substantially shorter if your borrower pays off or refinances the loan, they won’t need to worry about paying off their loan in a very short period of time.

Working with a portfolio lender means consistent service.

Lenders like APEX who portfolio their loans never sell them to other companies. Your borrower will be dealing with the portfolio lender for the life of the loan, and as a result they’ll receive consistent customer service. This often makes for a better experience for the borrower as well as good recommendations for your commercial mortgage brokering business.

Commercial mortgage brokers who choose to work with a lender offering fixed-rate, fully-amortizing loans have chosen a great way to expand their product to the benefit of small-balance commercial borrowers. By offering these types of loans, you offer your borrowers a less stressful way to obtain and manage the commercial mortgages they need. Providing these commercial loans will lead to satisfied customers and more mortgage leads for your business.

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