Interest Rate Update
June 1, 2010
The lfirst part of 2010 decrease in the US Treasury yields, with the 10 year T-bill increasing alone. The intrest rates in the commercial mortgage industry idecreased slightly eventhough capital sources remain limited. No one knows with any degree of certainty exactly where this economy is headed in the second half of 2010, although most feel that we will see some slight improvement in the commercial real estate sector.
Outlined below are interest rates available for multifamily and commercial income properties as of today. These are “best case” rates and are based on the strength of the entire transaction. These rates represent a host of wholesale commercial lenders that ACMN corresponds with nationwide.
Apartment / Mobile Home Parks
Portfolio (Bank) Loan Programs:
Adjustable Rates: 1 to 3 year terms as low as 4.250% - adjusting every 1-3 years
Fixed Rates: 3 year fixed – 4.650% to 6.000%
5 year fixed – 6.000% to 6.250%
7 year fixed – 6.250% to 6.750%
10 year fixed – 6.500% to 7.125%
Note: Loans are fully amortized over 30 years, rolling to adjustable rates at the end of the fixed rate term. Best rates are based on conservative LTV and higher DSC.
Agency (Fannie Mae, Freddie Mac, HUD) Loan Programs:
Convertible ARM: 4.150% to 5.250% (10 year term – convertible to fixed rate)
Fixed Rates: 5 year fixed – 4.960% to 5.380%
7 year fixed – 5.440% to 5.860%
10 year fixed – 5.770% to 6.190%
Note: Loans are amortized over 30 years, ballooning at the end of the fixed rate term. Yield maintenance prepayment penalties and/or lock out components may apply. Best rates and shortest terms require conservative LTV and higher DSC.
Office / Mixed Use / Retail / Other
Portfolio (Bank) Loan Programs:
Fixed Rates: 6.250% to 7.125% / 20 – 30 year amortization
If you have any questions, comments or concerns please don’t hesitate to contact me directly. My private phone number is (206) 979-4259. Or email me at: al@apartmentfinancing.com.
I would welcome the opportunity to discuss your income property financing needs with you in more detail.
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