It is incredible, isn’t it?
Regardless of who provides your financing, please be aware commercial real estate loan rates are now getting back to very attractive levels. Spreads are now starting to decline and potentially keep pace with the decline in the 10 YR Treasury.
Most competitive long-term pricing can provide financing below 4%, with spreads at about 150 basis points over. This of course is the insurance quote, where LTV ratios are below 70% with select product type and location. FNMA and Freddie Mac rate ranges are now in the 4.25% to 4.50%, depending on location, size, and LTV ratio. The HUD mortgage rate is now in the 3.85% range prior to MIP.
Consider these rate levels and how it impacts your business/investment plan. Regardless of whether or not a refinance makes sense, or a purchase of a property, the next few months should bring tremendous financing opportunities to the table.
Let us know how we can help you in your decision process! We will provide a personalized market report on your property (market dynamics of vacancy, rent levels, rent growth, comps etc.) which enables you to make an informed decision.
Trillium Capital Resources