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How does the pricing compare with conventional bank financing?

April 26, 2017Bank compare conventional financing pricing

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How does the pricing compare with conventional bank financing?

1 Answer

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10 Posted

There is no comparison. To the best of our knowledge, conventional lenders do not offer a twenty year fixed rate loan. Most lenders will fix their rate for a maximum of 5-7 years. Therefore if you are interested in a 20 year fixed rate then a 504 loan is a great option.The interest rate that the Primary Lender will offer is very competitive given that the lender has a first mortgage with a 50% loan to cost. Therefore, since their risk is less their pricing can be very competitive.