What are some of the interest rates you're getting?

Question

Hello everyone,

I have a balloon payment coming up and I was wondering what are the interest rates everybody receiving lately after the interest rate increase? I'm on the east coast, PA specifically but curious at the rates all over.

Thanks

Shin

Joel Owens · Answer

Hi Shin,

Depends on what type of property and price point.

One of my clients is buying a Red Lobster NNN close to 7 million in price. Lender will do 65% LTV 25 year amortization and 4.85% fixed for 10 years.

Another property we closed on a retail center for 3.5 million and 4.70%, 10 year term fixed , 30 year amortization with all national credit tenants in a great location.

Another was an Advance Auto for about 1,700,000 purchase with loan of about 1 million,25 year amortization, 10 year fixed and 4.65% rate.

If what you own is the smaller commercial under 1 million in price and mom and pop then most lenders will not compete for it as 1 million is their cut off point for loans. Some have a 2 million threshold. That leaves smaller banks etc. and they know they are the only game in town so they jack the rates up into the mid 5's or worse with 15 to 20 year amortizations. That is why on smaller properties you need higher caps to maintain the cap rate to interest rate spread for basis points return.

Hope it helps.

Dan Wallace · Answer

Multi-family loan amounts in Top Markets I am seeing rates in the mid 4's, loan amounts $1 to $7.5MM

Owner Occupied and non-owner occupied, multi-use commercial properties 5 year fixed around 4.6%, adj every 5 years, 25 years full am'd (no balloons);

Owner Occupied, multi-use, 25 years fixed 5.25%

All rates are market specific with larger MSA's getting better pricing.

Zach Gordon · Answer

I'm at typically 300 basis points over 5Y Treasury (25Y Amort). Usually we end up at like 280 BP over Treasury. I am going to a local commercial bank in MD.

Recently opened up a HELOC on my primary with PNC and I am .95 under prime

Michael Ablan · Answer

@Shin Bo - I'm getting 6.35% w/ my commerical lender on a 25 year ARM

Andrew Angerer · Answer

I recently got a HELOC for 6.5% with my credit score, I was able to get the lowest APR but I chose to get 90% of my home equity value so it did increase.

This was at a local credit union in Dayton Ohio.

What are some of the interest rates you're getting?

What are some of the interest rates you're getting?

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