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COMMERCIAL LOAN RATES 2/28/2015 

Just The Facts

The residential omparison is from October 2004  compared to October 2014.

October 2004 is considered the beginning of the housing bubble scheme.

Because many commercial lenders also make residential loans, residential performance information is critical to the Commercial Loan Rate market.

Flash~Residential Rates Rise 1/4%.

The upward swing in rates is from Home prices increasing 1.4% from 10/2014 to 12/2014, based on information supplied though the MLS by the National Association Of Realtors.

Mortgage applications decreased 3.5% in the week of 2/20/15.

Other homes prices at the wholesale level remain, at about the same amount, below the retail level.

Commercial Loan Rates remain flat. Qualifing is rigid. See >

RESIDENTIAL

MBA Mortgage Rates

2/20   2/13
30-Year Jumbo 4.09   3.92
30-Year Fixed Rate 3.99   3.93
15-Year Fixed Rate 3.28   3.24
5-Year ARM 3.28   3.09
FHA 203 (b) 3.82   3.73
COMMERCIAL LOAN RATES 2/28/2015
5 Yr. Fix/25 Yr. 5.825% Up from 11/31/2014
7 Yr. Fix/25 Yr. 6.125% Up from 11/31/2014
10 Yr Fix/25 Yr 6.200% Up from 11/31/2014
25/25 Yr.Avail.
DSCR 1.25% - 1.40% Unchanged
CAP RATE 8.0 - 8.5 - 9.0 Unchanged
 

COMMERCIAL LOANS 2/28/2015

BASIC UNDERWRITING GUIDELINES:

Own.Occ. Business –OR– Most Tenant(s) MUST have POSITIVE Cash-Flow on ’12 & ’13 Taxes & ’14 YTD.

- Prefer Newer (Built Under 40 Years Ago) Buildings -OR- Recently Major Renovated (10–15 Years Ago)

- ALL Borrowers Must have RECURRING Income to cover Personal Living Expenses AND 25% of Mortgage.

- Guarantor(s) MUST show proof of 12-18 Months Reserves; D.T.I. under 40-45%; C.Cards under $55k.

- Property held less than 5 Years may be Valued at Purchase Price plus Paid Capital Improvements.

- 675 Minimum (720 for ANY Construction) Experian FICO on Owner Occupied or N.O.O. Properties.

- Mortgage Payments, Property Taxes and All IRS Taxes must be Current PRIOR to Underwriting.

- N.O.O. Tenant Leases MUST be “in-place” with Proof-of-Payment for a Minimum of 6 - 9 Months.

- Single-Tenant N.O.O. Properties Term/Amort. may be Limited to Remaining Lease/Options.

- Maximum MULTI-USE Loan is $5,000,000 (N.O.O.) to $9,000,000 (SBA).

 

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