Will fed rate drop affect my loan?
I’m in the process getting a loan to refinance a commercial property. Not sure if it’s relevant,  but I’m going to pay off the current loan and add some buildings. Will the fed rate cut affect a 7a loan?
[{"id": "fkn8aim", "text": "no", "replies": [{"id": "fkn8b41", "text": "Damn", "replies": [{"id": "fkn9b3q", "text": "As a debt broker I have clients ask me this all the time.....but think about it. The Fed lowered the discount window. So they basically lowered the cost of banks borrowing overnight/short term. This won't impact long term loans. However, the fact that they committed to buying $700B in mortgage backed securities might have a positive impact. I would focus more on the 10-year treasury to answer your question than the Fed's rate.", "replies": [{"id": "fkn9lbj", "text": "Most people don\u2019t dig that far into the financial system.\n\n7a loans track to the WSJ Prime rate iirc, so it is possible that his rate could be impacted. I could be misremembering, but I thought they had a fixed period followed by floating.", "replies": [{"id": "fknfven", "text": "I believe so. I think mine is fixed for 10 years.", "replies": [{"id": "fkng0ve", "text": "How much is left on the term?", "replies": [{"id": "fkng2in", "text": "Im still in the application process.", "replies": [{"id": "fkng6yw", "text": "Ask your banker then.", "replies": [], "depth": 8}], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "fknscru", "text": "Even the 10YT yield is going against rates right now, weirdly enough.  Not sure if it's a short term artificial bubble or what is going on.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "fkns88g", "text": "Not directly, no.  Loan rates are market rates which have actually been rising over the last few days.\n\nBut it's a sign that things are crashing and in the long term they're likely to come down.", "replies": [], "depth": 1}, {"id": "fknva3e", "text": "Yes. Rates have gone up significantly", "replies": [], "depth": 1}, {"id": "fkpgjdq", "text": "I\u2019m closing on a 5 year, $2.3MM loan tomorrow. Expecting a sub 3% rate.  I have another with documents under review that may also be sub 3%. My banker told me today that they\u2019re going to be putting in a 3% floor in the term sheets going forward...", "replies": [{"id": "fkpgtlr", "text": "What type of loan. My guy is telling me mid 5\u2019s.", "replies": [{"id": "fkph5kc", "text": "Multi tenant commercial office - 70% occupied. Using a local bank. 5 year term, can\u2019t remember if I\u2019m doing 10 or 15 year amortization. Swapping to a fixed rate which should be sub 3%. There are personal guarantees on it, which burn off after the leases expiring in 2020 renew.", "replies": [{"id": "fkphbfa", "text": "I look forward to the day I\u2019m as good at this as many of you pros.", "replies": [{"id": "fkphwur", "text": "I got lucky - didn\u2019t get a job I applied for 15 years ago. Got a call a week later from a related company offering me a job as an asset manager with a very well respected local developer/landlord. It\u2019s been a great ride so far.", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}]