Commercial Loan Number Help

[John Matthew Johnston]

Hi I am new to commercial loans and I was wondering if i could get some help telling me if these numbers look ok. A little background, we went the commercial route because we are running into DTI issues.

THE NUMBERS:

LOAN 1

Amount $100,000

20 year loan

Rate 4.89

Monthly Payment- $654 + Taxes and Insurance

Four 5 year arms that will be reassessed at 3.5 above FHLB

2% Prepayment penalty if we ever REFI

Loan 2

Amount 61,000

20 year loan

Rate 4.89

Monthly Payment $402 +Taxes and Insurance

Four 5 year arms that will be reassessed at 3.5 above FHLB

2% prepayment penalty if we ever REFI

[Albert Bui]

Quote from @John Matthew Johnston:

@Albert Bui

If I may ask you a question? Is it common to get a loan disclosure prior to paying for appraisals for a REFI? My lender says it isn’t common practice for his company to put Rate, lock in period, 5 year arm period, pre payment information etc into a document. He tells me the rate and lock in date and everything else but says he usually doesn’t send out that information into a document. I feel I should protect myself with a document stating terms of loan.

 If this is a commercial loan then you'll get a term sheet with is a summary of the potential loan terms and not the final as things may change once the appraisal comes in and no there is no loan estimate or closing disclosure because this is a commercial loan.

LE's and CD' or loan estimates and closing disclosures are for 1-4 unit residential (non commercial) mortgages. Typically commercial notes/loans are for commercial use and dont have to adhere to the disclosures that typical loans have to adhere to.