The 10-Year US Treasury is currently at a 60-year historic low, hovering around 1.40%. Life Insurance Companies are currently lending; Fannie Mae, Freddie Mac and HUD are still aggressively lending on multi-family; and the CMBS is market is back (Commercial Mortgage Backed Securities, also known as Conduit loans). Life Insurance Company rates can be had somewhere around 4% – 4.50% fixed for 10-years. Freddie and Fannie have 10-year rates around 3.75%, with HUD rates below 3% fixed for 35-years (plus 0.45% for Mortgage Insurance Premium, also known as MIP). CMBS rates can be had for around 5% fixed for 10-years. These assumptions are based on fuller leverage.
Read more...It's a Great Time to be a Borrower | Multifamily Insight Blog