An analysis of loan interest rates by property type, age, geographic location, and appraised value

This particular study looks at a wide variety of commercial mortgage loans to determine if their underlying interest rates are related to the location of the property, the property type, the age of the property, or the appraised value of the property. All of the data collected to complete this analysis was extracted from the ORIX Capital Markets loan servicing data warehouse. To ensure that the data is accurate and valid, the data that is used to populate the warehouse must pass through a series of validity tests before it can be used to complete any analysis. The author expects to see variances in the different variables that are being analyzed within this study, but the results prove to be inconclusive as to whether or not commercial loan interest rates are significantly related to any of the variables examined. The literature reviewed to help support this study led the author to the conclusion that interest rates are affected by the factors being reviewed but they are also affected by a variety of other marketplace factors.