Real Estate/Development
Oct. 29, 2002
Due on Encumbrance
BY WILLIAM J. BERNFELD Imagine this scenario: It's 1995 and a commercial property owner has a $6 million first trust deed loan bearing interest at 10.1 percent, and "conduit" financing is available for 10 years at an 8.35 percent fixed rate, with a 30-year amortization. The borrower jumps at the opportunity to lock in a loan at a lower fixed rate, pulls out some equity (to the tune of $1.5 million) and goes merrily about its way.
BY WILLIAM J. BERNFELD
Imagine this scenario: It's 1995 and a commercial property owner has a $6 million first trust deed loan bearing interest at 10.1 percent, and "conduit" financing is available for 10 years at an 8.35 percent fixed rate, with a 30-year amortization. The borrower jumps at the opportunity to lock in a loan a...
Imagine this scenario: It's 1995 and a commercial property owner has a $6 million first trust deed loan bearing interest at 10.1 percent, and "conduit" financing is available for 10 years at an 8.35 percent fixed rate, with a 30-year amortization. The borrower jumps at the opportunity to lock in a loan a...
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