Compared fixed vs. adjustable rates on a $340k commercial refi and one was way smoother

I had to refinance a small retail property in Austin last spring. Spent two weeks comparing a 5-year fixed rate at 6.8% against a 3-year adjustable starting at 5.2%. The adjustable seemed better on paper but the bank wanted a ton of extra paperwork every quarter to confirm earnings. The fixed rate closed in 18 days with almost no back and forth. Has anyone else dealt with these variable rate loan audits after the fact?

2 comments

2 Comments

allen.charlie1mo ago

Maybe it's not that serious... I took a fixed rate on my last deal and didn't look back. Those quarterly audits they tack onto the variable ones always seem to find something to nitpick about, like a random expense code. Eighteen days to close is pretty fast for commercial, that bank probably just wanted to push paper.

sam_murphy391mo ago

Austin is a wild market now that all the transplants flooded in. It's like everyone wants a piece of that hot sauce but nobody wants the quarterly paperwork hangover.