Question about commercial loan

[Chase Gu]

Hi, I have a small mixed-use property under contract and am talking with a bank for financing. I have some questions. Any help is much appreciated! 

1. What would be a good interest rate for a small commercial property loan (about $500K) for 6-year term and 25 amortization right now? 6%? 5.5%?

2. After the 6 year term, the new interest rate will be WJS prime +1. Is it reasonable? 

3. Bank requests PFS, Tax return and LLC financial statement Every Year. Is it normal for commercial loan? Sounds like a lot to me.

4. I will do an environmental assessment. Does the bank do environmental assessment too? I do not want to pay for two environmental assessments. 

Thanks!

[Henri Meli]

@Chase Gu . I never had  a loan for $500k, but I had a higher loan and yes, they ask for all those questions.

1. Interest rates might vary depending on many factors ( ). I would usually shop by many lenders and compare their rates. If you only received a quote by one lender, then you need to get out there and do more. Get at least 3 quotes from banks who are interested.

2. People usually refinance after a few years to lock in lower rates and better terms. This usually assumes many things such as improved financials of the property, value-added, lower rates, more experience, more lenders competition, ... etc

3. Yes, it is normal to ask for all those

4. Banks usually ask for those to be done. But you pay for them.