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Commercial mortgage rates offered by banks throughout Worcester, Central Massachusetts and the MetroWest region vary widely. Why? Every bank has a unique approach to managing its business, and no one bank executes the exact same lending strategy.
Not Every Banker Sees the World the Same
Banks have different outlooks on the market. While some bankers believe we will be in for an extended period of higher interest rates, many other bankers believe that interest rates will quickly run up through 2023 but will be lower again before the end of the year.
Each Bank Is Different
Internal cost of funds varies from bank to bank. The lower the internal cost of funds the more competitive the bank can be on interest rate spreads and all-in rates offered on commercial loans.
Lending Strategies Vary from Bank to Bank
The composition of a bank’s loan portfolio can often influence its appetites for certain types of commercial loans and commercial real estate loan types. For this reason some loan types – be it industrial property, office building, or multi-family – may be more attractive to one bank more than another depending on its portfolio diversification.
At Kelleher & Sadowsky, our Capital Markets team has a good understanding of the various banks in the Worcester, Central Massachusetts and MetroWest region and what type of commercial real estate loans they are pursuing. As a result, we are able to identify leverage points to negotiate on behalf of our clients the best possible loan terms.