Fixed or Variable/Floating

Commercial mortgage lenders offer rates that are either “Fixed” for the entire of the loan, or “Floating.” A floating rate (also known as a variable or adjustable rate) may move up or down depending on fluctuations in the rest of the market, or along with changes in a particular index.

Will the interest rate on your commercial loan be fixed or floating? Often, this choice is left to the Borrower, and many lenders offer both Fixed and Floating loans for a variety of property types.