LLC loan interest rates over the last 5 years and refinancing

[Jacqueline Ho]

Hi everyone! I am trying to understanding the history of interest rates for an LLC loan. My partner and I are in the middle of purchasing a duplex in the Philadelphia area. We are taking a loan out on the LLC with one of us as a personal guarantor; from my understanding, this is a commercial loan. The loan is 7.75% 30-yr fixed.

We were asking our mortgage broker if interest rates ever decrease for these loans. Our broker mentioned that the average interest rate is 7.5-9% and they have never seen the rates drop below 7%. Is this accurate? How would one make a BRRR work in this scenario?

[Jacob Sherman]

I am 150% positive that for business purpose investment property DSCR loan or anytime of business purpose non qm investment loan in the state of PA for the year 2024 hte minimum loan amount to have a prepay is 312k . If it is a primary you can never have a prepay no matter what the loan amount is .

Below is a list of the states and their requirements for prepay 

AL Alabama Yes No restrictions None Refinance or sale
AK Alaska No N/A N/A N/A
AR Arkansas Yes No restrictions None Refinance or sale
AZ Arizona Yes No restrictions None Refinance or sale
CA California Yes No restrictions None Refinance or sale
CO Colorado Yes No restrictions None Refinance or sale
CT Connecticut Yes No restrictions None Refinance or sale
DC District of Columbia Yes 2 months interest on prepaid amt that exceeds 1/3 of
original UPB
36 Months Refinance or sale
DE Delaware Yes No restrictions None Refinance or sale
FL Florida Yes No restrictions None Refinance or sale
GA Georgia Yes No restrictions None Refinance or sale
HI Hawaii Yes No restrictions None Refinance or sale
IA Iowa Yes No restrictions None Refinance or sale
ID Idaho Yes No restrictions None Refinance or sale
IL Illinois Yes No restrictions None Refinance or sale Borrower must be corporation if
interest rate is > 8%
IN Indiana Yes No restrictions None Refinance or sale
KS Kansas Yes No restrictions 6 months Refinance or sale
KY Kentucky Yes No restrictions None Refinance or sale
LA Louisiana Yes No restrictions None Refinance or sale
MA Massachusetts Yes No restrictions 36 Months Refinance or sale
MD Maryland Yes No restrictions 36 Months Refinance or sale
ME Maine Yes No restrictions None Refinance or sale
MI Michigan Yes 1% of amount prepaid 36 Months Refinance or sale
MN Minnesota Yes Lesser of (i) 2% of UPB or (ii) 60 days of interest 42 Months Refinance only PPP restrictions only apply to loans
within conforming limits
MO Missouri Yes No restrictions None Refinance or sale
MS Mississippi Yes 5% of UPB if prepaid in months 1-12
4% of UPB if prepaid in months 13-24
3% of UPB if prepaid in months 25-36
2% of UPB if prepaid in months 37-48
1% of UPB if prepaid in months 49-60
60 Months Refinance or sale
MT Montana Yes No restrictions None Refinance or sale
NC North Carolina Yes No restrictions None Refinance or sale
ND North Dakota Yes No restrictions None Refinance or sale
NE Nebraska Yes No restrictions None Refinance or sale
NH New Hampshire Yes No restrictions Refinance or sale
NJ New Jersey Yes No restrictions None Refinance or sale Borrower must be corporation if
interest rate is > 6%
NM New Mexico No N/A N/A N/A
NV Nevada Yes No restrictions None Refinance or sale
NY New York Yes No restrictions None Refinance or sale
OH Ohio Yes 1% of original UPB 60 Months Refinance or sale
OK Oklahoma Yes No restrictions None Refinance or sale
OR Oregon Yes No restrictions None Refinance or sale
PA Pennsylvania Yes No restrictions None Refinance or sale Not permitted for loans less than base
amount ($312,178)
RI Rhode Island Yes 1-4 Purchase: 2% during first year only.
Otherwise, no restrictions
Purchase: 12 months
Refinance: 60 months
SC South Carolina Yes No restrictions None Refinance or sale
SD South Dakota Yes No restrictions None Refinance or sale
TN Tennessee Yes No restrictions None Refinance or sale
TX Texas Yes No restrictions None Refinance or sale
UT Utah Yes No restrictions None Refinance or sale
VA Virginia Yes No restrictions None Refinance or sale
VT Vermont No N/A N/A N/A
WA Washington Yes No restrictions PPP on ARM cannot extend
beyond 60 days prior to the
initial rate change date
Refinance or sale
WI Wisconsin Yes No restrictions None Refinance or sale No PPP permitted on ARMS
WV West Virginia Yes No restrictions None Refinance or sale
WY Wyoming Yes No restrictions None Refinance or sale