Houlihan Parnes Realtors.Michael J. Wengroff of Houlihan Parnes Realtors has arranged a $2.0125 million construction and permanent first mortgage on the new construction of a self-storage facility to be built in Newington, CT., a suburb of Hartford. The interest rate will float at .5 percent over the prime lending rate The lowest rate of interest that a financial institution, such as a bank, charges its best customers, usually large corporations, for short-term unsecured loans. The prime lending rate is an economic indicator and is often used as a measuring point for adjusting interest on the construction loan and then will convert into a permanent loan at the earlier of certificate of occupancy A document issued by a local building or Zoning authority to the owner of premises attesting that the premises have been built and maintained according to the provisions of building or zoning ordinances, such as those that govern the number of fire exits or the safety of or two years at either 2.5 percent over the oneyear Treasury issue or at 2.5 percent over the five-year Treasury issue. Payments on the construction loan are interest only, while payments on the permanent loan will be based on a 20-year amortization schedule. The prepayment penalty Prepayment penalty A fee a borrower pays a lender when the borrower repays a loan before its scheduled time of maturity. on the permanent loan will be of a sliding scale nature and the lender charged a one percent fee for both the construction and permanent financing Permanent financing Long-term financing using either debt or equity. permanent financing The long-term financing that supports a long-term asset. combined. |
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