DSCR Loan 8.62%

[Vishal Amin]

Hi BR Community,

I just closed on a duplex property using a DSCR loan with a 8.625% in Cleveland, OH. I know this is something I should have asked earlier, what kind of rates are you guys getting in your local market or if you are investing in Cleveland.

The lender has also a put a 5 year prepayment premium on the loan, which I have a hard time understanding. Does this mean, I am not able to refinance to a lower rate in the future until 5 years or I would have to pay a penalty if I were to do it earlier than 5 years.

Thank You,