Opening of Ace Hardwood Store. Loan provided by Commercial Loan Direct.
Yield maintenance is a prepayment fee that borrowers pay lenders to reimburse them for the loss of interest resulting from the prepayment of a loan.
This provision permits the lender to obtain the same yield as if the borrower had made all scheduled mortgage payments until loan maturity. It is important to note that if the current market rate or ‘equivalent yield of remaining term treasury’ is higher than the original interest rate the prepayment penalty usually decreases to zero in which case Lenders will usually have a clause that will trigger a 1% minimum prepayment fee. Many investors choose Yield Maintenance when they feel that interest rates will rise as it can offer substantial savings over other options like defeasance or declining prepayment penalties.
Current Terms
Loan Amount
Term to Maturity
Amortization
Interest Rate
Prepayment Terms
Time Remaining to Maturity
Min. Prepayment Penalty
Equivalent Yield of Remaining Term Treasury
Calculations
Calculated Penalty
Minimum Penalty
Prepayment Penalty
Note: The commercial mortgage calculators displayed in this website should be used as a guideline and do not represent a commitment to lend. Commercial Loan Direct and CLD Financial, LLC are not liable for any calculation errors resulting from the use of these calculators.
What Clients Say About Us
Fernando and Leanne are amazing. I had many small businesses that need refinancing over the years. I have met many Brokers and there is always a catch. ALWAYS!… Use them! Once you do you will work with them forever
- Nirav Patel
If you searching for a great experience Commercial Loan Direct is the place. Leanne took care of me and honestly had the greatest experience. She handled all of my needs in a smooth and timely manner listened and addressed any concerns I had about the process and was very patient. I can be quite a handful at times and Leanne was so professional and kind hearted. I'd 100% recommend this company. Thank you again.
- Vincent Arias
We were in unfamiliar territory when it came to refinancing. Commercial Loan Direct streamlined the whole process for us. Leann connected us with lenders that were the right fit for us. The money and time we saved was so worth it. I highly recommend them
- Rita Pisarski
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