Avatar's Blog

» Interest Rates Are Climbing

Posted on 5/12/2005
This time last year, hard money commercial bridge loans could be had for as little as 11% interest plus a few points. This month, with the prime rate hovering at 6%, hard money starts around 13% +/-. With interest rates rising and the increased number of hard money commercial loan requests being observed, it's important to note the changing landscape of business capital funding.

While there are still plenty of investor groups seeking to invest in mortgage backed securities, competition for their money is increasing. Rates will rise, not just from the increase in the prime, but also from the open market supply and demand effects of increased loan requests. Now is a good time to get the privately funded business expansion loan you are considering. Rates will not likely be lower and very likely be higher in the coming year. Likewise, lending criteria may tighten up, as only the best of loan requests will be needed to occupy the investment money available.
Posted in Miscellaneous