Five Year, Fixed Rate, Interest Only Loan Program
Coupled with the sophistication and lending power of one of the world's
leading investment banks and the best of Wall Street, Baron Financial
Group provides a short-term, fixed-rate, interest-only mortgage loan
program that is quickly becoming very popular among commercial real estate
developers and investors throughout the country.
With loans ranging from $2 Million up to $75 Million, borrowers receive 5-Year, Fixed Rate, Interest-Only loans nationwide. With a myriad of benefits, borrowers often utilize this program to obtain a lower rate, reposition a property, additional cash flow or as opportunity to refinance properties at an earlier date in the future (as opposed to 10 years or longer).
| Property Types: |
Almost All Commercial Property Types. |
| Loan Sizing: |
$2,000,000 to $75,000,000. |
| Loan-to-Value: |
Typically 50 to 60% of Appraised Value. |
| Loan Term: |
Up to 5 years. |
| Amortization: |
NONE. Interest-only for the five-year term. |
| Interest Rate: |
Fixed Rate, Interest-Only quoted as a spread above the 5-year U.S.
Treasury (on a 5-year term) subject to a minimum floor coupon rate
equal to 15 bps below coupon at time of loan application. |
| Debt Service: |
Not Applicable. |
| Personal: |
Full Recourse. |
| Prepayment: |
Allowed in full after lock-out period; pre-payable through defeasance.
Yield maintenance available under certain conditions. Open for pre-payment
at par during last 90 days of loan term. |
|