Interest Rates rising, what is a decent rate right now?
I need to refi my commercial real estate to get out of a hard money loan. What type of rates is everyone seeing now that interest rates will be on rise. I was hoping to get 4.25% but 5% looks more likely.
[{"id": "i4l9krr", "text": "What\u2019s the asset, quality, and location?", "replies": [{"id": "i4ldyaj", "text": "14 unit multi fam in SF Bay Area and fully stabilized", "replies": [], "depth": 2}], "depth": 1}, {"id": "i4letl8", "text": "Did a 5% deal in January 2022 with ok numbers. Just went back to same same lender (April 2022) with better numbers on a similar quality property and was now quoted 5.5%\u2026", "replies": [], "depth": 1}, {"id": "i4lsu2u", "text": "CA broker here. \nDepending on the LTV/DSCR/FICO\u2026.etc, you\u2019re looking at 4.85-5.75% interest for most banks. If you\u2019re looking for private money it\u2019s 6%-7.99%.", "replies": [], "depth": 1}, {"id": "i4m6sv9", "text": "Just locked in 183 bps over SOFR buying a 150 bps cap", "replies": [{"id": "i4mfu76", "text": "How much for the cap?", "replies": [{"id": "i4mo1dd", "text": "Don\u2019t want to talk about it lol, not cheap", "replies": [{"id": "i54mdnn", "text": "Yeah they\u2019ve been pretty expensive", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "i4muj2m", "text": "I have a client in escrow getting an SBA loan right now in southern CA....They are looking at 5.25% with 20% down for a retail building with another tenant in tow.", "replies": [{"id": "i4mw375", "text": "Thanks", "replies": [], "depth": 2}], "depth": 1}, {"id": "i4n7giq", "text": "Mortgage banker here: Just locked rate for a client with a regional bank at 3.95% for a 10 year fixed, non recourse. Markets decreased (i.e. better rate) a bit this week but are massively up overall given the last month especially given the fed's comments and corporate bond movement. I'll shoot you a DM if you're interested for more info. Looks like you have an apartment in the bay, per another post.\n\n&amp;#x200B;\n\nFYI best in class pricing at low LTV's is at 120 bps over corresponding treasury, with many group up in the 175-200 bp range, for 10 year fixed and 30 year am. Bank are in the 4-4.5% range for multifamily refi's and agency (fannie/freddie) spreads 130-170 bp overall. Other commercial asset types, other than industrial, go up from there regarding rate.", "replies": [], "depth": 1}, {"id": "i4narwe", "text": "Our pricing model is technically saying we should price at 5.5-6.0% for five years fixed but since that isn\u2019t competitive we are having to go 4.5-4.75% to win deals\u2026still seeing dumb banks doing 10 year fixed in house at those prices or even lower and can\u2019t compete with stupid \ud83d\ude44", "replies": [], "depth": 1}, {"id": "i4nf5mf", "text": "Depends on the size of the bank. Some banks look at margin over certain indexes. If you look at treasuries 5,7,10 +2.5% margin you\u2019re probably at just around 5%.", "replies": [], "depth": 1}, {"id": "i4nqpbp", "text": "5+", "replies": [], "depth": 1}, {"id": "i4oajco", "text": "The best rate available / in the market....is the one that gets your deal done.", "replies": [], "depth": 1}, {"id": "i4oephd", "text": "www.hexalend.com could help.\n\nRight now their rates are at 6%. \n\n\nIt may not sound great compared to 4.25%, but 6% on a multifamily, private money 30 year loan is very competitive in this market.", "replies": [{"id": "i4pzape", "text": "Thanks", "replies": [], "depth": 2}], "depth": 1}]