Commercial Mortgage Indexes – November

As we wrap up the third quarter of 2018, the 30-day LIBOR moved moderately higher during September, finishing the month up 20 basis points from August at 2.27%. The 10-year U.S. Treasury jumped 30 basis points from 2.88% to 3.18%. The S&P 500 posted its best quarter (up 7.2%) since 2013. Health care was the top-performing sector of the third quarter, surging 14.1 percent, its highest quarterly gain since the first quarter of 2013. Industrials and tech, during the same period, rose 9.7 percent and 8.5 percent. Meanwhile, The Fed raised rates from 2.00% to 2.25% and has penciled in 75 basis points of rate increases over the next 9 months. Some analysts are anticipating five more quarter-point rate hikes through early 2020, which is two more than traders are currently pricing.The cost to borrow funds has already begun to creep upwards, with more forecasted rate increases on the horizon. If your property is stabilized, lock in your long-term, fixed-rate loans now.

Links to this month’s rates:

Multifamily Mortgage Indexes – November

Commercial Mortgage Indexes CMBS – November

Commercial Mortgage Indexes Life Company – November

CommCap is the largest full-service mortgage banking company in Nevada, with offices in Reno and Las Vegas. We specialize in originating, underwriting, closing and servicing loans in excess of $1MM on all income-producing property types. We represent a wide variety of funding sources including Life Insurance Companies, Investment Banks (CMBS), Bridge Lenders, Agency lenders and Banks. 
Agency Update(multifamily, mobile home parks, student housing, senior housing, affordable housing, etc.) Life Company Update(multifamily, office, retail, self-storage, industrial, etc.) CMBS Update(multifamily, office, retail, self-storage, industrial, etc.)
  • Fannie and Freddie Mac have a small balance program for deals $1MM- $6MM
  • Green Rewards provides up to 5% more proceeds than conventional and you will see a cost savings in spread
  • Mod-Rehab Products are offered by both Fannie and Freddie
  • HUD/FHA offer 35-yr. terms with 35-yr. amortization. Something to consider for people who plan to hold properties long-term
  • HUD offers construction-perm financing. Up to 85% LTC, non-recourse with rates similar to conventional. 40-yr., term/ 40-yr. am. This is for the long-term hold
  • 5, 7, 10, 12, 15 and fully amortizing terms available
  • 30-yr. amortization
  • Non-recourse
  • Our recourse based life companies will go as low as $1 million in proceeds compared to a minimum of $3 million for non-recourse life company lenders
  • Non-recourse and Recourse (for less conservative loan requests) available
  • Recourse is different from traditional recourse in that there is no mark-to-market language in the loan documents, hence there is no margin call. It does not go on your credit report
  • 65%-75% max LTV (non-recourse and recourse)
  • 3, 5, 7, 10-yr.… up to fully amortizing terms available
  • 25-yr. amortization
  • CMBS offers interest only depending on the leverage point
  • 75% max LTV (most CMBS lenders are underwriting max 70% LTV based B-buyer demand)
  • 5, 7, 10-yr. terms available
  • 30 yr. amortization
  • Non-recourse
  • Still the most aggressive lender for retail and office properties
  • Rate lock at application is available with no “material adverse change” language. There is a slight premium to the spread for the rate lock

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