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Interest Rate Update
September 21, 2009
The Treasury yields have dipped nicely early this week, falling a combined 24 basis points. This has helped pull rates down, though the market is already turning around today. Given the volatility, getting started on the loan process will pay off in the end - the sooner you can lock the rate, the better. Rates remain at a low, and only some lenders are still lending. Your clock may be ticking. We continue to advise clients to act fast, while they still can.
Outlined below are interest rates available for multifamily and commercial income properties as of today. These are the "best case" rates and are based on the strength of the entire transaction. These rates represent a host of wholesale lenders that we correspond with nationwide.
Apartment/Mobile Home Parks
Fixed Rates - Portfolio: 1-3yr Fixed ARMs As low as 4.250% (5 year term - adjusting every 1-3 years)
Fixed Rates - Portfolio: 3 year fixed 4.650% - 6.000%
5 year fixed 6.000% - 6.255%
7 year fixed 6.250% - 6.500%
10 year fixed 6.50% -7.000%
Notes: loans are fully amortized over 30 years - no balloons! Stepdown pre-payment penalty, low costs, efficient close time. Best rates require very conservative LTV and higher DSC.
Fixed Rates - Agency: Convertible ARM 4.150% - 5.250%
5 year fixed 4.800% - 5.190%
7 year fixed 5.220% - 5.610%
10 year fixed 5.470% - 5.860%
Notes: Loans are fully amortized over 30 years, ballooning at the end of the fixed rate term. Yield maintenance prepay penalty and/or lock out component. Best rates and shortest terms require conservative LTV and higher DSC.
Office / Mixed Use / Retail / Other
Fixed Rates-Portfolio: Starting at 6.25% to 6.75% /20-30 year amortization
If you have any questions, comments or concerns please don't hesitate to contact our office. It would be a pleasure to work with you!
Al Williams - President Adam Davis Sr. Vice-President
Al@apartmentfinancing.com Adam@apartmentfinancing.com
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