After drifting down for some time, rates have risen quickly over the past few weeks.
From a low just below 4% at the end of February, the 10YR Treasury is now over 4.30% — the latest round of volatility in an economy that seems less and less predictable. If you have a construction loan or bridge loan maturing, your shoes are feeling tight.
A lot of borrowers were comfortable with floating-rate debt, expecting rates to fall by the time they needed to refinance. That bet looks worse every week. With uncertainty, persistent inflation, and the prospect of growing federal deficits all pushing rates higher, the window to get ahead of this is narrowing.
If your apartment loan is maturing, refinancing conventionally can be tough. Higher rates, higher coverage, and shorter amortization will get you a loan, but the numbers may not work.
FHA changes the math.
With fixed rates in the low 5%s, 35-year amortization, a 35-year term, and full nonrecourse protection, an FHA-insured loan offers something the current market rarely does: certainty. Lower rate, no balloon, no personal guarantee. Room to walk comfortably again.
Now may be the time to find your footing.
If you have a multifamily property you need to refinance, reach out. A conversation with AGM costs nothing, and could help you and your feet feel a lot better.
About AGM Financial Services, Inc.
Family-owned with over 30 years of experience, AGM has closed over $10 billion in FHA-insured multifamily project loans nationwide. We underwrite, fund, and service all of our loans. Developers and owners can count on AGM to be accessible, transparent, consistent, and ready to lend. From new construction to substantial rehabilitation to acquisition and refinance — for both market-rate and affordable projects — we can get the deal done. To learn more about AGM, call 800.729.4266 or visit agmfinancial.com.