Prepayment Penalties on Rental Properties - Please share exper.

[Andy Basler]

Hello all,

I've acquired a few properties and now I'm starting to enter the refi and purchase more phase. So hence I'm looking at some of my loans that have "PrePayment Penalties". 

I wanted to see what other's are experiencing or thoughts around PrePayment Penalties on Commercial loans for Rental Real Estate.

In the early days, I was just thrilled that any bank would lend me money.  I was new, and probably would have accepted just about any terms.

Now that I have a decent size portfolio, and a little more experience, I want to see what others are getting, or ways of not getting, PrePayment Penalties. 

Most of mine are 5% in year one, 4% in year two, 3% in three, 2% in year four, and 1% in year five. A couple say 1% year five till maturity.

I realize everything is negotiable. What are other's experiences, thoughts, or terms they are getting?

Thanks in advance,

Andy