Pricing + Cost of Capital
Understand the cost of capital.
No two real estate transactions are exactly alike, and neither is the cost of financing. Price matters. Structure matters. Execution matters.
Interest rate is only one component of a real estate financing structure. Depending on the transaction, the economics may also include East Towne Capital fees, capital-source origination or financing charges, required borrower equity, prepayment provisions, extension provisions, and independent third-party transaction expenses.
East Towne Capital believes borrowers should evaluate the complete financing structure rather than a headline interest rate in isolation.
How Pricing Is Determined
How is financing priced?
Pricing for real estate financing depends upon the characteristics and risk profile of the transaction. Factors may include those listed to the right.
Current pricing available by request. Actual pricing varies based on transaction characteristics, borrower and property eligibility, leverage, program availability, underwriting, and market conditions.
For that reason, East Towne Capital does not represent a single interest rate as applicable to every transaction. Rates are time-sensitive and East Towne Capital must approve any advertised rate before publication.
East Towne Capital Fees
Straightforward financing fees
East Towne Capital uses a tiered fee structure based on financing amount. Larger transactions qualify for lower fee percentages.
The standard origination fee is based primarily on the total loan amount, as set out in the schedule at right. Fees may vary depending on the financing structure, transaction complexity, loan type, and services required.
Any compensation payable to East Towne Capital is separate from fees and charges imposed by the applicable capital source.
Minimum fee rate: 1.00 point. The schedule below is a standard tiered schedule — not a guaranteed fee for any specific transaction. Applicable East Towne Capital fees are identified in the appropriate transaction documentation.
- Under $100,000
- 2.00 Points
- $100,000 – $250,000
- 1.75 Points
- $250,001 – $1,000,000
- 1.50 Points
- $1,000,001 – $3,000,000
- 1.25 Points
- $3,000,001 and above
- 1.00 Point
How to read this schedule
- Standard fee. Each loan amount falls into exactly one tier; tiers are not combined or split across portions of the same loan.
- May vary. Actual fees may vary based on the financing structure, transaction complexity, loan type, and services required.
- Separate from other costs. This is East Towne Capital's fee only — separate from capital-source charges and independent third-party expenses.
- Paid at closing. East Towne Capital's fee is due only upon the successful closing of your loan. No fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. At closing, the applicable fee is disclosed and paid as part of the closing transaction and reflected on the applicable closing statement (HUD-1 or closing disclosure).
IMPORTANT FEE DISCLOSURE: East Towne Capital fees, where applicable, are separate from fees and origination charges imposed by the applicable capital source and from independent third-party transaction expenses. East Towne Capital's fee is due only upon the successful closing of your loan — no fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. Rates, fees, terms, leverage, and program availability vary by transaction and are subject to underwriting, due diligence, documentation, and final approval.
The fee schedule represents East Towne Capital's standard origination fees and is provided for informational purposes. Actual fees may vary based on the transaction, loan product, financing structure, complexity, and services provided. Applicable fees and financing terms will be disclosed in the specific transaction documentation. Loan approval, pricing, and terms are subject to underwriting and applicable lender requirements.
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Capital Source Fees
Capital source origination + financing charges
The applicable capital source may impose separate fees or charges in connection with providing financing. These charges are separate from compensation payable to East Towne Capital.
Varies by transaction, financing structure, and applicable program.
East Towne Capital does not identify the underlying capital source on the public website. Capital-source branding, proprietary program names, logos, and contact information are not displayed.
Third-Party Expenses
Independent third-party transaction expenses
Depending on the property and financing structure, a transaction may require services or due diligence performed by independent third parties.
Not every expense applies to every transaction. Requirements vary based upon property type, location, financing structure, applicable program, and underwriting requirements.
Unless factually accurate, independent third-party expenses are not characterized as revenue or compensation earned by East Towne Capital.
How Fees Are Separated
Three categories of cost
East Towne Capital's fees are separate from fees charged by the applicable capital source. A transaction may also involve independent third-party expenses. The website never combines these charges in a way that suggests they are all East Towne Capital compensation.
East Towne Capital Fee
Varies by transaction and financing structure. Depending on the transaction and East Towne Capital's role, an origination, brokerage, advisory, processing, placement, or other financing-related fee may apply where applicable.
Varies by transaction and financing structure.
Capital Source Origination / Financing Fee
The applicable capital source may separately charge origination points, underwriting fees, commitment fees, processing or administrative charges, extension fees, exit fees, minimum-interest requirements, rate-lock fees, or other financing-specific charges. These are separate from East Towne Capital's compensation.
Varies by financing structure and applicable program.
Independent Third-Party Expenses
Independent third-party expenses such as appraisal, title, settlement, legal, survey, environmental, engineering, insurance, recording, and other due-diligence costs. These are not automatically fees earned by East Towne Capital or the applicable capital source unless factually accurate.
Transaction dependent.
East Towne Capital LLC fees, when applicable, are separate from any origination fees, points, underwriting fees, commitment fees, or other charges assessed by the applicable capital source. A transaction may also involve independent third-party expenses, including appraisal, legal, title, settlement, inspection, environmental, engineering, insurance, recording, and other due-diligence costs. East Towne Capital's fee is due only upon the successful closing of your loan. No fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. At closing, the applicable fee is disclosed and paid as part of the closing transaction and reflected on the applicable closing statement (HUD-1 or closing disclosure), separate from lender and third-party charges. The fees and expenses applicable to a particular transaction depend on the financing structure, property, borrower or sponsor, and program requirements and will be identified as applicable during the financing process. Rates, fees, terms, and program availability are subject to change. Information presented on this website does not constitute an approval or commitment to provide financing.
Understanding Points
Understanding points
Certain real estate financing structures may include fees expressed as "points." One point generally equals 1% of the applicable financing amount.
Educational Example
Financing Amount
$1,000,000
1 Point
$10,000
2 Points
$20,000
3 Points
$30,000
IMPORTANT FEE DISCLOSURE: East Towne Capital fees, where applicable, are separate from fees and origination charges imposed by the applicable capital source and from independent third-party transaction expenses. East Towne Capital's fee is due only upon the successful closing of your loan — no fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. Rates, fees, terms, leverage, and program availability vary by transaction and are subject to underwriting, due diligence, documentation, and final approval.
FOR ILLUSTRATIVE PURPOSES ONLY. This example is intended solely to demonstrate how points are calculated and does not represent a quoted East Towne Capital fee, capital-source origination charge, financing proposal, or commitment.
Cost Considerations by Structure
Different structures carry different economics
Construction, bridge, and long-term financing are each evaluated against their own cost structure — not the interest rate alone.
Construction + Development
Construction and development financing should be evaluated based upon the complete project capital structure — borrower equity, land basis, leverage, construction proceeds, draw mechanics, carrying costs, financing term, extension provisions, and exit strategy.
- Interest
- East Towne Capital Fee
- Capital Source Origination / Financing Charges
- Interest Reserve where applicable
- Extension Charges where applicable
- Draw Inspection Fees
- Plan + Cost Review
- Appraisal
- Survey
- Environmental
- Engineering
- Legal
- Title
- Insurance
- Other applicable due-diligence costs
Bridge Financing
Because bridge financing is typically associated with a defined business plan and holding period, borrowers should evaluate the total cost of capital relative to the expected execution timeline and exit strategy.
- Interest Rate
- East Towne Capital Fee
- Capital Source Origination / Financing Charges
- Interest-Only Payments where applicable
- Minimum-Interest Provisions where applicable
- Prepayment Provisions
- Extension Provisions
- Valuation / Appraisal
- Legal
- Title
- Insurance
- Other applicable due diligence
DSCR + Long-Term Financing
A lower nominal interest rate does not necessarily result in a lower total financing cost or a financing structure better suited to the investment strategy.
- Interest Rate
- East Towne Capital Fee
- Capital Source Financing Charges
- Fixed vs. Adjustable Rate
- Amortization
- Interest-Only Period
- Prepayment Structure
- Loan Term
- Cash Required at Closing
- Escrows where applicable
- Reserve Requirements where applicable
- Third-Party Costs
Prepayment Structure
Prepayment matters
Certain financing programs may include prepayment penalties, declining prepayment schedules, yield-maintenance provisions, minimum-interest requirements, or other early-payoff provisions. Other financing structures may provide reduced or no prepayment restrictions. Availability varies by transaction and financing structure.
Borrowers should evaluate the prepayment structure alongside the interest rate when comparing financing options. East Towne Capital does not advertise "no prepayment penalty" unless that statement is accurate for the specific financing structure being described.
The Complete Picture
Look beyond the rate.
The lowest stated interest rate does not necessarily represent the most appropriate or lowest-cost financing structure for a particular real estate transaction. A sophisticated evaluation of financing should consider the complete economics and execution requirements of the transaction.
The right question is not simply "what is the rate?"
The better question is "what is the right capital structure for the transaction?"
Estimate Financing Costs
Estimate the cost of capital
The lowest advertised interest rate does not necessarily represent the best financing structure for a real estate transaction. Use this tool to compare the interest rate alongside origination or financing fees, interest-only payments, and estimated third-party costs.
This calculator provides estimates for educational purposes and does not constitute a financing quote, approval, commitment, disclosure, or guarantee of terms.
Est. Monthly Payment (Amortizing)
$—
Est. Monthly Interest-Only
$—
Est. Points in Dollars
$—
East Towne Capital Fee
Enter loan amount
Est. Initial Financing Costs
$—
Drag the loan amount to see how the East Towne Capital fee tier adjusts. Larger financing amounts qualify for lower fee percentages.
The East Towne Capital fee is calculated from the published tier schedule based on the total loan amount. 1 point = 1% of the applicable loan amount. For illustrative purposes only: on a $1,000,000 loan, 1 point = $10,000 and 2 points = $20,000. This does not represent any other fee for a specific transaction.
IMPORTANT FEE DISCLOSURE: East Towne Capital fees, where applicable, are separate from fees and origination charges imposed by the applicable capital source and from independent third-party transaction expenses. East Towne Capital's fee is due only upon the successful closing of your loan — no fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. Rates, fees, terms, leverage, and program availability vary by transaction and are subject to underwriting, due diligence, documentation, and final approval.
Rates, fees, leverage, loan amounts, and other financing terms shown are for informational purposes only and are subject to change. Actual terms depend on the transaction, property, borrower or sponsor, financing structure, applicable program, market conditions, underwriting, due diligence, and final approval. Nothing presented on this website constitutes an approval, commitment to lend, or guarantee of financing.
Fees + Financing Costs Disclosure
FEES AND FINANCING COSTS DISCLOSURE — East Towne Capital LLC may charge brokerage, advisory, placement, origination, processing, or other transaction-related fees, as applicable, in connection with arranging, structuring, facilitating, or otherwise assisting with a financing transaction. Any fees payable to East Towne Capital are separate and distinct from any origination fees, points, underwriting fees, commitment fees, administrative fees, extension fees, exit fees, or other charges imposed by the applicable capital source. East Towne Capital's fee is due only upon the successful closing of your loan; no fee is payable in advance, and if your loan does not close, no East Towne Capital fee is due. When applicable, the East Towne Capital fee is collected at the closing table and disclosed and paid as part of the closing transaction on the settlement statement (HUD-1 or closing disclosure), separate from lender and third-party charges. A transaction may also involve fees and expenses payable to independent third parties, including, without limitation, appraisal or valuation fees, legal fees, title and settlement charges, recording fees, surveys, environmental assessments, engineering or property-condition reports, construction inspections, insurance costs, and other due-diligence or transaction expenses. Fees, rates, costs, and financing terms vary based upon the specific transaction, property, borrower or sponsor, requested financing structure, underwriting requirements, market conditions, and applicable financing program. Any applicable East Towne Capital fees, capital-source charges, and third-party expenses will be identified separately, as applicable, during the financing process. Information presented on this website is for general informational purposes only and does not constitute an offer, approval, commitment to lend, or guarantee of financing. Rates, fees, terms, program requirements, and availability are subject to change without notice and remain subject to underwriting, due diligence, documentation, and final approval.
Rate + Fee Disclosure
Rates, fees, leverage, loan amounts, and other financing terms shown are for informational purposes only and are subject to change. Actual terms depend on the transaction, property, borrower or sponsor, financing structure, applicable program, market conditions, underwriting, due diligence, and final approval. Nothing presented on this website constitutes an approval, commitment to lend, or guarantee of financing.
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No upfront East Towne Capital fee. Our fee is due only when your loan successfully closes. If your loan does not close, no East Towne Capital fee is due.