Market Rates

As almost all of us know, current real estate lending rates are at an all-time low. This is a good time to buy real estate, for not only are prices among some of the lowest they have been in 20 years, but interest rates on borrowed mortgage money are equally low.  And, every week we get announcements on the current borrowing rates, so this page will provide a weekly update on commercial real estate lending rates. These rates are given to me by various commercial lenders and will vary daily, depending on the lender and the properties involved. Interest rates are often quoted in advance of an actual transaction, or during the escrow process, but in reality are not final and can be changed up to the final closing date, or the date when the transaction is funded. And, this will vary with the procedures of the lender involved and their requirements to fund the loan, as well as the characteristics and credit worthiness of the borrower. Bottom line: interest rates are not firm and guaranteed until the closing of the transaction, or close of escrow, whichever term is used to describe the final recording of a real estate transaction, which varies in different locations and states.

Market rates are to be considered in the context of what is the lender requiring, and what do the various lenders offer. Here is an example of what a typical lending offer may look like for various loans from one of our lenders:

Multifamily and Mobile Home Park loans from $500,000 to $5,000,000 (we can go up to $500 mil)

Multi-tenant Retail and Industrial loans from $1,000,000 to $5,000,000 (we can go up to $500 mil).

7 year fixed multifamily rates as low as 4.5% with 4,3,2,1 prepay, 30 year term/ 30 year amortization.

Fixed periods of 3, 5, 7 or 10 years available in all programs.

90 day no-cost rate lock.

Attractive step-down prepayment penalty.

To some, this may not make sense…thus questions to me, and I will try to explain some “industry jargon”.

Each week I will be giving updates on what is happening with commercial property nationwide….it is selling, and financing is available. Here is an example of a recent closing: