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cost of commercial loans vs residential: Difference in cost of obatining financing in commercial vs residential - 03/06/08 02:05 PM
 I often get a lot of questions on why commercial loans are typically more expensive both in rate and fee's and cost.  I thought a brief run down on the reasons might shed light on the subject if you are considering your first commercial/investment loan.
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Commercial rates are almost always higher than residential for the same borrower with the same profile. The central reason is the risk.  The risk in a commercial project has historically been greater for a bank than single family homes.  The prospect of disposing of a commercial property sitting empty for a long time is a significant risk to … (2 comments)

 

Douglas W. Dowell, JD

Lees Summit, MO

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Eagles Flight Commercial Capital, Inc.

Office Phone: (816) 875-3670

Cell Phone: (816) 337-2570

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