Blog Post Testing-22nd Aug

In commercial real estate financing, lockout periods can be an important factor for lenders. In situations where the borrower pays off the loan early, that means the lender does not earn the anticipated yield from that loan, impacting their financial rewards of lending. The lockout period, often expressed as a set number of years from the origination date, is often overlooked when comparing commercial real estate loans. It is not a fee paid initially at the closing but only when the loan is paid off in full early.