CMBS Rate Locks

Debt Yield in Relation to CMBS Loans

Debt Yield in Relation to CMBS Loans

When it comes to CMBS loan underwriting, DSCR and LTV aren’t the only factors that a lender considers. Increasing, lenders are looking at a another metric, debt yield, in order to determine whether it’s truly worth approving a borrower for a conduit loan. Debt yield can be determined by taking a property’s net operating income (NOI), dividing it by the loan amount, and multiplying it by 100.

Rate Locks in Relation to CMBS Loans

Rate Locks in Relation to CMBS Loans

Unlike other types of large real estate loans, getting an early or extended rate lock on a CMBS loan is pretty much unheard of. However, many lenders do offer 30-day rate locks on certain CMBS loans in order to make their loan products more attractive to potential borrowers.