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Compared to residential loans the interest rates on commercial loans are generally higher. <\/p>
Appraisal, legal, loan application, loan origination, and\/or survey fees are the additional fees that are added to the overall cost associated with commercial real estate loans.<\/p>\n
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Some costs have to be paid before the loan is approved or rejected, whereas the others are to be paid annually. <\/p>
For instance, at the time of closing, there may be a one-time loan origination fee of 1%, and an annual fee of 0.25% until the loan is paid fully. <\/p>
A $1 million loan, might attract a 1% loan origination fee that is $10,000 to be paid upfront and a 0.25% fee of $2,500 paid annually along with the interest.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t