Mortgages and Loans: Commercial Lending Products
Metuchen Savings Bank Lending Requirements for Commercial Real Estate Loans
- Both owner-occupied and investor commercial properties. Loan amounts begin at $50,000 to a maximum of $10,000,000. Preferred property types include office buildings, apartments, including five units and over, retail and mixed use. Special purpose properties may also be considered.
- Up to 75% LTV
- Debt Service Coverage Ratio ≥ 1.25x
- Personal Guarantees Required
- Pre-payment Penalties Apply
- Non-Assumable
- Real Estate Tax Escrows Required
|
- One Month P+I Reserve to be deposited into business account at Metuchen Savings Bank to facilitate auto-debit of mortgage payment
- $200 Application Fee Plus Cost of Appraisal
- Evidence of No Asbestos Related Risk and/or Lead Paint Risk (residential units only)
- Transaction Screen Analysis or Phase I Environmental Assessment May Be Required
- No Secondary Financing Permitted without Written Consent of MSB
- Attorney Review Fee
- 1% Origination Fee due upon Acceptance of Commitment
- Additional Terms and Conditions may be required on a case by case basis
|
| 10- & 15-Year Fixed Rate |
5/20 or 5/25 Adjustable Rate |
10/20 or 10/25 Adjustable Rate |
Advantage:
Stability Over the Life of the Loan
Features:
- Lock in a long-term interest rate with a stable, predictable monthly payment
- Borrowers who want to build equity faster should select the shortest loan term they can afford
- Shorter loan term carries a lower interest rate, helping borrowers to save in interest cost over the life of the loan
|
Advantage:
Lower Monthly Payments and Increased Purchasing Power
Features:
- Borrowers obtain lower mortgage payments with a longer amortization period
- Competitive Rates
- More Cash Flow due to longer amortization period
|
Advantage:
Lower Monthly Payments and Increased Purchasing Power
Features:
- Borrowers obtain lower mortgage payments with a longer amortization period
- Competitive Rates
- More Cash Flow due to longer amortization period
|
|
|
|
|
|
|
| |
| Construction Loan |
Business Term Loan |
Business Line of Credit |
Advantage:
Interest only during construction period
Features:
- Can borrow up to 80% of the “completed” appraised value
- 1% Origination Fee due upon acceptance of Commitment
- Commercial and Residential properties
- Personal Guarantees required
|
Advantage:
Short term financing to acquire fixed assets, other than real estate
Features:
- Various terms and rates based on the individual needs of the customer
- Personal guarantees required
- Secured loans
|
Advantage:
Provides a source of short term capital & cash flow allowing a business flexibility on a
day-to-day basis
Features:
- Checks allow customer easy access to funds
- Two year term with a variable interest rate
- Annual 30-day clean-up required
- Personal Guarantees required
|
|
|
|
|
|
|
| |
Stay Informed
