Rate Locks for CMBS Loans, Explained
Unlike some types of commercial real estate loans, for which the rates can be locked in 30-60 days in advance, CMBS loan rates generally fluctuate until closing. This means that it’s common for CMBS lenders to re-price their loan directly prior to closing, which can be a headache for borrowers. However, some lenders do offer 30-day rate locks for qualified borrowers. Sometimes, these rate locks come with an extra fee, while at other times, they’re free. Due to the fluctuating nature of interest rates, not all conduit lenders offer rate locks, but it can never hurt to ask.