Several factors can affect the monthly payments for a commercial mortgage. Here are some of the most important ones:
Loan amount: The amount of the loan will affect the monthly payment. The larger the loan, the higher the monthly payment.
Interest rate: The interest rate is the cost of borrowing money and can significantly impact the monthly payment. A lower interest rate will result in a lower monthly payment, while a higher interest rate will lead to a higher monthly payment.
Loan term: The length of the loan term, or the time it takes to repay the loan, will affect the monthly payment. A longer loan term will result in a lower monthly payment, while a shorter loan term will lead to a higher monthly payment.
Amortisation schedule: The amortisation schedule is the breakdown of the principal and interest payments over the life of the loan. A longer amortisation schedule will result in lower monthly payments, while a shorter amortisation schedule will lead to higher monthly payments.
Property taxes: Property taxes are a significant expense for commercial properties, and they will impact the monthly payment. The higher the property taxes, the higher the monthly payment.
Insurance costs: The cost of insuring the commercial property will also impact the monthly payment. Higher insurance costs will lead to a higher monthly payment.
Other expenses: Other expenses such as maintenance costs, repairs, and management fees can also affect the monthly payment.