Fixed-Rate Loans
A fixed-rate loan keeps the same interest rate for a set period, so your principal and interest payment stays predictable. On commercial loans, the fixed period is often shorter than the full amortization.
Benefits
- Predictable payments for budgeting
- Protection if market rates rise
- Easier long-term planning for stabilized properties
Tradeoffs
- Prepayment penalties, yield maintenance, or defeasance can make early payoff costly
- The starting rate may be higher than an adjustable option
- Many fixed-rate commercial loans still end in a balloon payment
How We Help
We compare fixed-rate terms and prepayment structures across lending partners so the rate lock matches how long you plan to own the property.
Not sure which option fits?
Book a free 15-minute Capital Review or call (760) 214-5850. Ready to move forward? Start your application online.
Horizon Financial places commercial and business financing requests with a network of third-party lenders and is typically paid by the lender at funding. When a lender doesn’t pay, our fee is disclosed in writing before you sign and is due only at closing. No up-front fees. Not all applicants will qualify. All loans are subject to lender underwriting, credit approval, and program guidelines. Rates, terms, and timelines vary by lender. Victor Hernandez, NMLS #798657.