Lockouts in Relation to CMBS Loans
For borrowers, prepayment penalties can be one of the most challenging aspects of CMBS loans. In addition to prepayment penalties, however, most conduit loans have a lockout period, a period of time in which the loan cannot be prepaid at all.
Prepayment Penalties for CMBS Loans
CMBS loans come with prepayment penalties — typically defeasance or yield maintenance. Find out how each penalty works.