All Forum Posts by: Michael Masters

I find this broker posts recent mortgage rates, it's good for me because I use Freddie and they carry that one here.  Summary at top but more detail as you page down.

https://selectcommercial.com/c...

I haven't looked into this in great detail, but these changes don't tell us if they are levelling the playing field or making a change to pricing based on results they are seeing.
For example, assume GEICO is lowering rates for 18 year-old boys driving Porsches by $500 but raising rates for Soccer Moms driving minivans by $100.  Well, if original pricing was $5,000 per year for the boys and $500 for the Moms than perhaps this is change is not based on subsidizing boys driving crazy but rather the costs are actually changing.  Even with these changes, the boys are paying $4,500 and the Mom's are paying $600.
I have no idea what Freddie and Fannie are doing, but looking at changes in pricing doesn't give the full story.

I go to this website to find the latest rates from a variety of sources, just select "Commercial Mortgage Rates" from the top banner:

https://selectcommercial.com

Keep scrolling down the page to see rate details.

I've checked these versus rates I get when I've refinanced and they seem to be in line.  

Hmmm, this sounds like a great idea!  Can anyone remember what happened the last time banks let people get overleveraged in real estate?

https://www.cnbc.com/2022/09/01/bank-of-america-to-help-minorities-buy-first-homes-with-new-mortgages.html

Help people through better interest rates, not by getting them to make dangerous financial decisions.

Crazy high closing costs.  Two questions before I comment:

(1) What is the $40k towards debt?  Is this towards the mortgage or personal debt from elsewhere?  If it's for the mortgage, I would say you are only cashing out $120,000 not $160,000.  If it's towards personal debt elsewhere, it is real cashed-out funds and you shouldn't consider it a cost.

(2) What is the old loan terms vs new loan terms? Is one a 5 year ARM and the other 30 year fixed?

Does anyone know where I can find regular updates on the Freddie Mac Small Balance Loan interest rates?  Even if it's not directly posted by Freddie, maybe a loan servicer?

I realize there are many rates which vary by the length of the loan, size of loan, LTV, DSCR, etc., but any of these rates would work for me to track the direction these rates are going in.

Any help would be appreciated!  Maybe even Fannie rates could work.

FYI:
Applied in early May for an increase to my loan, received approval end of September.

I guess they are really backed up.  I followed up multiple times so they wouldn't forget about me.

Where is the property located?  Cost of living in Manhattan is about 2.5-3 times that of Cleveland which is a multiple of rural locations.  Expenses will vary greatly so your location will help people answer.

I'd be interested to hear people's updates on requests for loan increases.

I applied today for a $140k loan increase from $60k to $200k.  I'll let you know how it progresses.

I am considering taking out an additional loan on one of my properties for multiple reasons including increasing my liquidity as well as capital improvements to the property. I'm curious of loan products that will allow me to borrow an additional $250,000 which would bring me to a DSCR of 1.20.

Here are the specifics:
8-unit apartment building located in downtown Boston, a top SBL Market (zip code 02113)

$6,200,000 = Property value today

$2,700,000 = Current equity in property

$287,000 = 2020 NOI

56% = LTV

4.6% = Cap rate

1.285 = DSCR

Any thoughts?