Payment, DSCR, debt yield, and balloon balance for a commercial real estate loan, calculated the way lenders underwrite.
How a commercial mortgage differs
Commercial loans rarely fully amortize. A loan might amortize over 30 years but carry a 10-year term, which leaves a balloon balance due at maturity. Many also include an interest-only period up front, which lowers early payments but leaves more principal outstanding.
Amortization sets the payment · Term sets the balloon · IO defers principal
Because many lenders size to the amortizing payment, that’s the figure we use for DSCR, even when the loan pays interest-only at first.
What this means for your deal
A comfortable payment isn’t the same as a financeable one. Enter your NOI to see whether the loan clears typical DSCR and debt-yield thresholds, then use Loan Sizing to find the maximum the asset supports.
Find your maximum loan: Loan Sizing →For
Owners, developers, investors, and brokers working on loans for income-producing commercial real estate.
Not for
Consumer mortgages, unsecured business loans, equipment financing, SBA loans, equity raises, or securities.