When applying for a commercial mortgage, there are many financing options that are available.  Just like with residential loans, commercial borrowers can choose between fixed rate or adjustable rate, construction or permanent, and even interest only or fully ammortized.  However, it is not just that simple.

There are many factors that come into play that are similar to residential mortgages, yet different from them.  Some of these items DSCR (or Debt Service Coverage Ratio), Rent Roll, Operating Expense, and many more.  Property types plays even more important role than in residential financings.  With residential where it is limited to primarily Single family, condo, 2-4 plexes, townhouses, and mobiles, there is a whole slew of property types that most lenders place into categories.  The categories are based on property risk and business risk… multi-family is very low risk for a bank versus a restaurant which is very high risk.

Over the course of this series, I will cover some of the common terms/jargon of the commercial mortgage lending world.  I will also discuss different property types and typical qualifying guidelines for financing the property (IE down payment, loan term, etc).  SBA loans will be briefly discussed, as I will create a separate thread on this topic in the future.

THE AUGUST $79 WEEKEND SPECIAL

Wow, the year has really gone by fast here at the Holiday Inn Express & Suites on the Scenic Dead River!

We have stayed very busy improving our product for our guests and visitors.

Just this month, we completed installing brand new carpet and padding in all of our guest rooms. In addition, all of our rooms are now equipped with brand-new Dove Quilt-Top Beds.

Our guests have been enjoying our weekly manager’s reception on Tuesday nights, where we offer complimentary wine, beer, and appetizers in the evening for our guests. It also gives us a chance to discuss with our guests what we have done right, and how we can improve. It helps us feel a little smarter, too.

How many of you know that our frequent guest program, Priority Club, is the largest frequent visitor program in the nation? The points you earn for stays never expire, and can easily be converted into airline points, points for shopping clubs, or even for stays at competing hotel chains!

The new hot breakfast bar has been a hit with our guests, and some of them are even ordering the products to use in their homes. Delicious, yet easy and quick to prepare is something that everyone can appreciate. And, the breakfast is the envy of our competitors. Not just a continental bagel with some cream cheese anymore.

A bit more of news – Nate’s Riverdeck is next door, and has officially opened under its new name. The new menu is truly delicious, and there is live entertainment on the weekends. Come give it a try!

When you get a chance come by and visit if you haven’t in a while, and remember, we offer friends and family discounts, as well as Chamber of Commerce discounts for those of you who are members. They are easy to qualify for. Just call directly to the hotel at: 352-742-1600

Here’s to a spectacular August, and you can look forward to Staying Smarter with Less Stress at the Holiday Inn Express!

Alex Cooke

Director of Sales and Marketing

The Holiday Inn Express Hotel and Suites

on the Scenic Dead River

3601 W. Burleigh Blvd

Tavares, Florida 32778

352-742-1600

www.hiexpress.com/tavaresfl

tvrflsales@aol.com

Eustis, Florida

The following is a Rate Lock Advisory issued by a la mode, inc and Mortgage Commentary. The views and opinions expressed are not that of Knightlines Mortgage Services, LLC. Please contact your mortgage professional before locking an interest rate.

Tuesday’s bond market has opened in negative territory due to early stock gains. The stock markets are off to a strong start with the Dow up 165 points and the Nasdaq up 30 points. The bond market is currently down 6/32, which will likely push this morning’s mortgage rates higher by approximately .125 - .250 of a discount point over yesterday’s morning rates.

There was no relevant economic news posted this morning. Stock traders are showing their optimism in the economy following another decline in oil prices. High fuel costs have been noted by many sources as a contributing factor to the slowing economy. As oil prices fall well off their recent highs, that concern seems to be easing. This leads to better expectations for economic activity and corporate earnings.

Today’s FOMC meeting will adjourn at 2:15 PM ET and is expected to bring no change to key interest rates. If that is indeed the result, I expect top see little reaction in the markets. However, the post-meeting statements seem to have more of an influence on the markets than the rate adjustments themselves, or a lack of one in many cases. Accordingly, we may still see some volatility in the markets and possibly mortgage pricing during afternoon hours even if the Fed leaves interest rates alone.

Look for an update to this report after the markets have an opportunity to react to the news.

If I were considering financing/refinancing a home, I would…. Lock if my closing was taking place within 7 days… Float if my closing was taking place between 8 and 20 days… Float if my closing was taking place between 21 and 60 days… Float if my closing was taking place over 60 days from now… This is only my opinion of what I would do if I were financing a home. It is only an opinion and cannot be guaranteed to be in the best interest of all/any other borrowers.”
©Mortgage Commentary 2008