All Forum Posts by: John Matthew Johnston

@Jack Miller

I reached out to him and he says what I’m looking for is called a commitment letter. What is the difference between a commitment letter and a term sheet?

@Joseph Cohen

Thanks I reached out to him and he says what I’m look for is a commitment letter. What is the difference between that and a term sheet?

@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.

Hi I am new to commercial Loans, the lender I’m working with doesn’t wanna to put anything in writing. I asked him for a loan disclosure stating the rate, lock in period And other details of the loan. He wants to give me closing information and costs but says it isn’t his Company practice to put rate, lock in period , 5 year arms etc into a document. He said his clients usually just trust him. I want it in writing so I’m protected. It it common practice to just trust commercial lenders? Am I being unreasonable ?

Hi I am new to commercial Loans, the lender I’m working with doesn’t wanna to put anything in writing. I asked him for a loan disclosure stating the rate, lock in period And other details of the loan. He wants to give me closing information and costs but says it isn’t his Company practice to put rate, lock in period , 5 year arms etc into a document. He said his clients usually just trust him. I want it in writing so I’m protected. It it common practice to just trust commercial lenders? Am I being unreasonable ?

@Albert Bui

No biggie it’s just Miscommunication, I should of made it more clear. We will actually be taking both of the loans. The loans are REFis on two separate properties.

@Albert Bui

Sorry having a hard time understanding the question. Not well versed in commercial loans

Jon I appreciate the reply, I will shop around alittle and see if I can get a longer term. The lender said he was unable to package the loan because we hold one of the properties in an LLC. I will look at the prepayment penalty period, I agree it should expire. Thanks again for the reply.

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

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