What is an Exit Fee in a Commercial Mortgage or Loan?
What is an Exit Fee?
An exit fee, a mortgage exit fee, or a loan exit fee is most often used in a commercial mortgage or loan, and it’s a fee that’s due at the time the loan is paid off, similar to points paid upfront, but an exit fee is paid at the time the mortgage or loan is the payoff.
What are Exit Fee Amounts?
Most of the time, an exit fee can be a flat fee, for example, 2% of the loan amount, but sometimes an exit fee can be variable and can increase the longer the loan is outstanding. This incentivizes the borrower to execute their business plan and pay off the mortgage or loan when they say they will.
For example, there can be a 1% exit fee on a commercial mortgage, and if not paid off within 12 months, it goes by .10 basis points every month.
Have more questions? View our
Private Money Lender – Related posts
JUST CLOSED IN LAKE WORTH, FLORIDA! Gelt Financial just closed a $700K First Mortgage on a 5-unit multifamily property in Lake Worth, FL. A local borrower came to us for [...]
JUST CLOSED IN PETERSBURG, VIRGINIA! Gelt Financial is excited to announce the closing of a $150k First Mortgage in Petersburg, VA. The non-recourse loan was secured by a cash-flowing, [...]
Gelt Financial, LLC is pleased to be back in Scotsman Guide. Gelt and its management have been lending to small commercial property owners and investors since 1989. Gelt offers commercial [...]
JUST CLOSED IN NORTH FORK, NEW YORK!Gelt Financial is excited to announce we just closed a beautiful Single-Family Investment Property in North Fork, NY. This home is centered in picturesque [...]
JUST CLOSED IN FORT LAUDERDALE, FLORIDA! Gelt Financial is excited to announce we just closed a $1.4MM non-performing note purchase on an office building in Fort Lauderdale, FL. The [...]
DEAL CLOSED IN PHILADELPHIA, PENNSYLVANIA! Gelt Financial just closed on a $250K First Mortgage on a retail property in Philadelphia, PA. A borrower called up Gelt and needed a [...]
JUST CLOSED IN NASHVILLE, TENNESSEE -- ATLANTA, GEORGIA -- NORTHAMPTON, MASSACHUSETTS! Gelt Financial is pleased to announce we just closed a $3.55MM First Mortgage on a NNN Portfolio. The [...]
Gelt Financial was able to arrange to finance for the hard-working owners of a business and commercial real estate a sports retailer using their commercial real estate as collateral [...]
Gelt Financial providing private lending for office buildings nationwide between $100,000 and $5,000,000 Gelt Financial is a leading provider of private lending for office buildings nationwide. We offer loans between $100,000 [...]
JUST CLOSED IN FORT LAUDERDALE, FLORIDA! Gelt Financial just closed a $600K First Mortgage on a retail building in Fort Lauderdale, FL. The borrower was having trouble finding a [...]
JUST CLOSED IN FOUR BUSINESS DAYS! Gelt Financial is excited to announce we just closed a $500K mortgage on a five-property Dollar General portfolio across multiple states. Gelt provided [...]
JUST CLOSED IN DAYTON, OHIO! Gelt Financial just closed a $115K First Mortgage on a retail/office building in Dayton, OH. This small-balance mortgage used Gelt's funding to purchase two [...]
Purchasing distressed debt, also known as buying non-performing loans, can be a profitable investment strategy for those willing to take on the risk. Distressed debt refers to loans that [...]
JUST CLOSED IN SEVEN BUSINESS DAYS! Gelt Financial just closed a $750K First Mortgage on a retail building in Fort Lauderdale, FL. This loan needed to close FAST, and we [...]
JUST CLOSED IN ATLANTIC CITY, NEW JERSEY! We have a story for you. An American Dream come true. Last week we received a $65k payoff from a family who [...]
ANOTHER DEAL DONE IN FLORIDA! Gelt Financial just closed a $100K Distressed Debt Purchase on a single-family investment property in Fort Lauderdale.Gelt Financial purchases distressed debt, nonperforming loans, and sub-performing [...]
JUST CLOSED IN QUEENS, NEW YORK! Gelt Financial is excited to announce we closed a $300k First Mortgage on a Single Family Investment Property in Queens, NY. The borrower [...]
Gelt Financial is a leading provider of DIP loans, also known as debtor-in-possession loans. We offer DIP loans between $100,000 and $3,000,000 to help businesses continue operations and achieve financial stability [...]
As private commercial and Investment Mortgage Lenders, we focus on the needs of our borrowers and try to find solutions that make sense for them. Gelt Financial regularly provides [...]
Private money lenders are the secret weapon among commercial real estate investors and the reason behind the thriving commercial mortgage industry. Bridge loans and bridge mortgages play a critical [...]
Gelt Financial buying distressed debt on commercial real estate between the loan sizes of $100,000 and $5MM Are you a lender looking to sell your distressed commercial real estate debt? [...]
When submitting loan requests to a private lender, it is important to provide as much information as you can to get a quick response and ensure that your deal [...]
JUST CLOSED IN DOTHAN, ALABAMA! Gelt Financial closed a $600K First Mortgage on a NNN Property in Dothan, AL. A PopShelf, a credit-rated tenant with a corporate guarantee, secured [...]
We provided the financing for hard-working self-employed businesswomen to purchase a used car lot and repair center in Philadelphia, PA, under our No income documentation business owner programs. The loan [...]
Jack and Marcy talk to Mortgage Brokers and give tips on closing more deals. "Jack: Jack and Marcy at Gelt Financial. Marcy: How are you guys today? Jack: Hopefully, you're having [...]
What is a Mezzanine loan. Gelt lends up and down the cap stack, debt and Equity. "Marcy: Hi. Jack: Hello, Jack and Marcy, making a socially distanced video on what a [...]
Gelt is excited to provide first mortgage financing for an owner of a business who purchased a home for his employee's to live in. The buyer owned several restaurant business with [...]
Another deal closed! Gelt Financial discusses their recent closed loan on a 400k second mortgage in Tampa, FL. No appraisal, 85% debt. Interest only, short term, six month deal. We focused [...]
Term sheet signed Black Friday, deal ready to close Wednesday. Broker contacted us when bank did not close and needed a very quick close. We did it! "Jack: Hi, Jack and [...]
Gelt Financial, LLC just closed a $1,000,000.00 first mortgage on a Building leased to Wendy's in TN. This was closed without an appraisal and within a week, the borrower needed a [...]
Real estate investors, DON'T depend on anyone else when doing your background or due diligence for your real estate projects. This can backfire on you or cause complications. "Hey, this is [...]
Jack and Marcy go into details and talk about Whats needed to have a 4 day closing on a investment or commercial mortgage. It happens all of the time, but all [...]
Jack Miller talks about what he leaned by making Toast? How good things take time and effort before you see the results. "Hey, this is Jack Miller. I hope you're having [...]
Gelt is excited to provide first mortgage financing for the owners of a multi family property in Brooklyn, NY. This property was inherited with a balloon loan that was in default. [...]
Gelt provides Condo and HOA Association Financing when banks won't. Typically banks wont deal with small associations, high delinquency, low reserves or high investor condensations as well as other reasons and [...]
What is a LTV Loan to Value and how do we calculate it? This is not a cut and dry question. "Marcy: Hey Jack Jack: Hey Marcy, let's talk today about [...]
Gelt Financial helped an Auto Body Shop in St Louis, Missouri with credit challenges with a no-income qualification mortgage with a 3-year term. "Hello, this is Jack Miller of Gelt Financial. I [...]
Gelt Financial, LLC just closed a $50,000.00 first mortgage on an office building in Kansas City, for a real estate investor. Gelt focuses on closing small commerical and investment mortgages. "Jack: [...]
Gelt Financial, LLC focuses on DIP Lending, also known as Debtor-in-Possession Financing and exit financing for Chapter 11 bankruptcy cases. Jack Miller gives a little history and overview of DIP financing [...]
Understand your deal and what types of deals your lenders do is important to being a successful mortgage broker.
Jack Miller gives his opinion on if its wise to pay down a home mortgages faster then the term calls for? Its all comes down to the person you are. "Hi, [...]
Jack and Marcy go into detail on how to get 100% financing on Commercial and investment real estate. There is a lot of talk about this, but we drill down and [...]
In this video, Michael discusses how Gelt Financial handles prepayment penalties on commercial mortgages. They offer a creative solution by negotiating an exit fee that allows clients to avoid paying minimum [...]
Learn to say NO more, and you will be more focused and productive in achieving the results you want. "Jack: Okay, Jack and Marcy at Gelt Financial here. So, we want [...]
Jack and Marcy share some real-life tips for commercial Mortgage Brokers: "Jack: Okay, we're starting; we're improvising here. Marcy: Yes, because we have had mechanical problems this morning. Jack: I'm embarrassed [...]
Jack Miller speaks to mortgage brokers and talks about doing business together and some things to know.
Educational video on what's a draw schedule, how do they work, why a lender does it and how it protects the borrower on rehab or construction lending. "Marcy: Hello. Jack: Anyway, [...]
Gelt just provided a experienced real estate investors and repeat borrower of Gelt's financing on land in Miami, Florida that's zoned for 9 units. "Jack: We're on. Marcy: Hi, how are [...]
