Current Rates
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Current Rates (by Ray-N-Pa [PA]) Mar 21, 2023 6:40 PM
       Current Rates (by mapleaf18 [NY]) Mar 21, 2023 8:12 PM
       Current Rates (by 6x6 [TN]) Mar 21, 2023 8:19 PM
       Current Rates (by Jason [MI]) Mar 21, 2023 9:01 PM
       Current Rates (by Otis [IL]) Mar 21, 2023 11:27 PM
       Current Rates (by Hoosier [IN]) Mar 21, 2023 11:51 PM
       Current Rates (by Ray-N-Pa [PA]) Mar 22, 2023 6:53 AM
       Current Rates (by Phil [OR]) Mar 22, 2023 7:22 AM
       Current Rates (by S i d [MO]) Mar 22, 2023 8:43 AM
       Current Rates (by zero [IN]) Mar 22, 2023 8:59 AM
       Current Rates (by Chris [CT]) Mar 23, 2023 3:44 PM
       Current Rates (by zero [IN]) Mar 23, 2023 5:31 PM
       Current Rates (by GKARL [PA]) Mar 24, 2023 8:12 PM
       Current Rates (by don [PA]) Mar 26, 2023 1:35 PM

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Current Rates (by Ray-N-Pa [PA]) Posted on: Mar 21, 2023 6:40 PM

I guess I have to admit it, I got spoiled by the low interest rates.

I just got my second financing quote today and ouch oh and even oweeeeie. I am getting beat up by both of them.

I have a fair priced place that has been on again, off again, on again. I am getting rate quotes between 7.25% and 7.75%.

The Cap Rate on this thing is 6.4% but can be raised to 6.66% if I offer all cash and a quick close. I have the cash, but then I will want convert most of the money pulled from my LOCs to fixed rate loans....that is where the 7s rate number coming in at. That doesn't excite me all that much.

I understand things from a historic perspective. I have had rates much higher than mid 7's. But when you are coming from the rate I had, to this one - sticker shock happens. Sorta sad that I had to give up that 3.75% rate when I sold the other place.

The Fed Strategy is working I guess, as they have me considering taking my foot off the accelerator a little bit.

Current Rates (by mapleaf18 [NY]) Posted on: Mar 21, 2023 8:12 PM

Problem is increasing the interest rate has caused the banks that rely on low rates to collapse. What's needed is to eliminate the universal basic income that has been going around since covid and put people back to work.

Current Rates (by 6x6 [TN]) Posted on: Mar 21, 2023 8:19 PM

It does hurt when you get used to things a certain way and then there are drastic changes.

If you are feeling this way, what do recent homebuyers, who got ARM loans, feel like? What will they do?

Current Rates (by Jason [MI]) Posted on: Mar 21, 2023 9:01 PM

Well.. For me I look at it as a good thing rates are up. Been selling on land contracts at 9%, next one trying 10%

Current Rates (by Otis [IL]) Posted on: Mar 21, 2023 11:27 PM

Closing on another house in a couple weeks. 15 year loan at 6.875%. Wish I was still getting the 4-5% like before. Small loan amount though, only $50k so the interest rate difference doesnít hurt too bad.

Current Rates (by Hoosier [IN]) Posted on: Mar 21, 2023 11:51 PM

Borrowers like low rates, savers like high rates. As we have no debt, Iím loving the higher rates. Iíve loaded up in my portfolio on FDIC insured CDs in ladder format. The biggest problem I have is that anything over 5 years is not call-protected. The other obvious problem is inflationÖ5% gains with 7% inflation is not a good outcome.

Current Rates (by Ray-N-Pa [PA]) Posted on: Mar 22, 2023 6:53 AM

Guess the Fed will decide my final rate later today. No win for them

Current Rates (by Phil [OR]) Posted on: Mar 22, 2023 7:22 AM

Historical average for home mortgage is around 6 percent. Non owner occupied is higher. Last 18 years have been crazy low. Late 70s mortgage was as high as 18 percent. Buckle up, it's going to get bumpy!!

Current Rates (by S i d [MO]) Posted on: Mar 22, 2023 8:43 AM

Jason has the correct attitude for higher (but still historically low) rates. Now is the time to make interest rather than buy cheap.

My mortgage on my first personal residence was 8%, and that was considered a good rate at the time for a 30-year fixed rate mortgage ... in 1999!

If the banks are loaning at 7%... then private lenders should have no problem lending / financing in the 10-12% range. Higher for those with "spotty" credit or lacking collateral.

ARM loans are part of the game for many investors, so the key is to hedge against them by purchasing assets that increase in value as rates rise. What's one way to do this?

A personal home with a mortgage rate that is BELOW the rate of inflation is one method. If your home loan is 6% and inflation is 10%, you're making the spread of 4%, which covers your "loss" if your ARM on a rental adjusts upward less than 4%.

As investors, our job is to prosper in any market. Rates are low? Buy. Rates are high? Sell or owner finance.

Can't get ahead if you're only winning 50% of the time.

Current Rates (by zero [IN]) Posted on: Mar 22, 2023 8:59 AM

I did a refi last year on three dupes. Rate is 6.13% for a 30 year fixed. I have two more just like those that still have ARMs.

Thing is my ARMs already adjusted and are at 5.25%. I will let them sit for now.

Current Rates (by Chris [CT]) Posted on: Mar 23, 2023 3:44 PM

Most of my commercial loans right now are 4-4.6 percent.

So a $1m 25 year note @ 4.5% is 5,558.32 a month

@ 7% its 7,067.79

Does paying an extra $1,509.47 a month for a few years until rates come down suck? Yep! But look at it this way, your tenants are paying it not you and its temporary.

If a deal is that tight maybe its not a good deal.

Current Rates (by zero [IN]) Posted on: Mar 23, 2023 5:31 PM

My favorite banker buddy always told me to stop worrying about the interest rate and worry more about the cashflow.

Current Rates (by GKARL [PA]) Posted on: Mar 24, 2023 8:12 PM

This certainly changes calculations. I locked down a 10 year commercial loan at 3.95 in 2001. I'll be amortized down quite a bit before that resets. I have one coming due in 2025 for a reset that was at 4.75 that I took out in 2018. I'm glad that I locked things down as long as possible. I just think now is the time to hold up on buying unless the deal is extraordinary. I think things are going to be repriced for a higher interest rate era.

Current Rates (by don [PA]) Posted on: Mar 26, 2023 1:35 PM

Look on the bright side: higher rates mean it is harder for people to buy houses, which expands the tenant pool.

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