Fixed
Rate Loans Although Fixed Rate loans are
a staple of the mortgage industry, many opportunities exist
for negotiation on mortgage lending terms, especially interest
rates, loan-maturity and prepayment penalties. Because of our
deep relationships with lenders, Meridian can provide the best
fixed interest rates and additional terms in the industry. Borrowers
can feel secure knowing that the rate will not change throughout
the entire term of the loan. Meridian's experienced professionals
know when to recommend fixed rate loans through proprietary
loan evaluation models.
Floating Rate
Loans A floating rate loan is typically
indexed to the London Interbank Offered Rate (LIBOR), which
tracks and approximates the Federal Funds rate. Many recent
borrowers have chosen floating rate loans to take advantage
of the historically low interest rates of the past few years.
Floating rate loans often feature minimal or no prepayment penalties.
They are particularly attractive to buyers with a two to four
year financing horizon, such as acquisition of a property going
though a reposition or a turnaround. Meridian can help borrowers
exploit these flexible structures for their immediate short-term
utility or as an astute means of strengthening their long-term
strategy.
Construction
Loans Typically, Construction Loans
are short-term loans utilized by borrowers to finance building
costs. Every construction loan varies depending on the product,
the length of the construction process, and the borrower's experience.
Meridian can help builders find the best source, rate and term
for these often critical loans.
Mezzanine
Loans
Whether it be structured as partnership debt, or preferred equity,
a mezzanine loan can be an integral component for a real estate
owner or developer in many diverse circumstances. The mezzanine
typically equals the difference between the first mortgage lending
amount and 85-90% of the purchase price. Meridian has vast experience
in evaluating options for our borrowers in this increasingly
utilized loan product for a variety of real estate transactions.
Bridge
Loans All types of short-term financing
can be accessed for complex or challenging situations in terms
of both timing and product. Designed to be paid back relatively
quickly, such as by a subsequent longer-term loan, bridge loans
can be a key component in a long-term strategy for real estate
borrowers. Meridian has a wide range of sources for Bridge Loans
and can help borrowers understand all the nuances and conditions
as well as plan for the future.
Forward
Commitment Forward commitments continue
to gain in popularity in the current borrowing climate for real
estate. This involves a commitment by a lender to make a loan
in the future, often with a predetermined interest rate. Meridian
has developed many resources for forward commitments and has
experience in obtaining the optimal structure for the borrower.
Renovation/Repositioning
Similar to a construction loan, a renovation loan may involve
financing for the specific purpose of upgrading an existing
property in order to project the desired image of a product
or service to the market. Meridian lending professionals are
able to help borrowers present their renovation program to the
right lending source and to plan and consummate transactions
in a timely fashion, with the best rates and terms available.
