Mortgage Banking

Making sense of commercial real estate finance.

Archive for December, 2008

Fed Lowers Rate

Posted by Jordan Crouch on December 16, 2008

http://finance.yahoo.com/news/Fed-cuts-target-for-key-rate-apf-13846723.html

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Posted in Uncategorized | 1 Comment »

Prepayment Penalties in Today’s Market

Posted by Jordan Crouch on December 12, 2008

The SquareFeet Blog has an excellent post detailing how the shifting treasury yields are affecting prepayment penalties. Read the article here. One thing the post does not mention is that for a borrower that is forced to sell a property, one way to avoid these hefty prepayment penalties is to have the new borrower assume the loan. This usually can be done with a 1% fee versus paying the prepayment penalty of 10% (using the example in the post).

Posted in Capital Markets, Finance 101, Lenders | 3 Comments »

Tell us something we don’t know

Posted by Jordan Crouch on December 9, 2008

Apartments rank as best investment among institutional investors.

Posted in Capital Markets | Leave a Comment »

Lender’s Attitudes Towards Property Types

Posted by Jordan Crouch on December 3, 2008

This is a quick summary of lending attitudes for each of the main property types specific to the Seattle area at this particular moment (Dec. 2008).

Apartments – Love them. People have to live somewhere. With rising interest rates and fewer condo developments, people are moving back into apartments.

Industrial – Good. Easy property to take care of; sweep the floor, maybe a new coat of paint, and its

Office – Ok, as long as it’s leased. It’s a tenant’s market, therefore if your building is fully leased, it shouldn’t be a problem.

Retail – No, unless it’s fully leased, long term tenants, grocery anchored, on a main arterial without other retail competition. In other words, not likely.

Hotel – No.

Condo – **Click** (as in the lender just hung up).

Posted in Capital Markets, Seattle Real Estate | 2 Comments »