Master Money Matrix©
Fixed Rate Edition
1st Quarter 2024
| LOAN TYPE | EXPLANATION | UNIVERSE | RISK PROFILE / RATES | COMPETITIVE FEATURES | ||
| BEST RATES | AVERAGE RATES | RATES FOR HIGHER RISK LOANS | ||||
| Targeted class of real estate for this lender, lower leverage, strong sponsor | Targeted class of real estate for this lender, moderate leverage, satisfactory sponsor | Targeted class of real estate for this lender, 70%-80% LTV leverage, underwriteable sponsor | ||||
| INSURANCE COMPANY PERMANENT LOAN | This "general account" money is typically reserved for top tier office, industrial, retail and apartment real estate. Loans from $1M to $100M+ | Three dozen plus insurance companies, active in New England | Insurance companies typically price at spreads over Treasuries or Swaps | +Non-recourse +No origination fees +Offer full range of note terms +No loan covenants +Excellent loan servicing +Even lower rates with shorter amortization |
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| 5 yr 5.20% 7 yr 5.10% 10 yr 5.10% 15 yr 5.15% 30 yr 5.25% | 5 yr 5.75% 7 yr 5.70% 10 yr 5.65% 15 yr 5.75% 30 yr 5.75% | 5 yr 8.50% 7 yr 7.30% 10 yr 7.25% 15 yr 7.45% 30 yr 7.50% |
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| CONDUIT PERMANENT LOAN | Loans originated by investment banks, some commercial banks and some specialty lenders for sale in pools of mortgaged backed securities. Loans from $3M to $100M+ | There are approximately two dozen active lenders but top third dominate the volume of origination | Conduit rates are typically priced at a spread over Swaps | +5 & 7 year program not very active +Non-recourse +Will lend on broad range of real estate +Open to structuring for lease rollovers +No origination fees +Ongoing loan covenants typically required +History of inflexible loan servicing |
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| 5 yr 6.65% 7 yr n/a 10 yr 6.00% | 5 yr 7.15% 7 yr n/a 10 yr 6.75% | 5 yr 8.20% 7 yr n/a 10 yr 7.50% |
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| BANK PERMANENT LOAN | Most prevalent and familiar capital source. Loans from $1M to $75M+ | Over 250 banks of all sizes active in New England | Banks price over various indexes - mainly Swaps, FHLB advance rates and cost-of-funds | +Easy borrower access +Least programmatic lending criteria +Generally charge origination fee +Some level of recourse may be required +Ongoing loan covenants often required |
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| 5 yr 5.40% 7 yr 5.25% 10 yr 5.40% | 5 yr 6.05% 7 yr 6.10% 10 yr 6.25% | 5 yr 6.70% 7 yr 6.95% 10 yr 7.35% |
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| FANNIE MAE & FREDDIE MAC PERMANENT LOAN | These two government sponsored agencies provide a significant percentage of multi-family loans. Loans from $1M to $50M+ | Fannie lends in New England through 26 DUS & SBL lenders; Freddie lends through 25 Optigo & SBL lenders | Fannie and Freddie rates are typically quoted at spreads over Treasuries | +Non-recourse +No loan covenants +No origination fee if loan sourced through a correspondent +15-35 bps better rates for "affordable / mission" properties |
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| 5 yr 5.00% 7 yr 4.75% 10 yr 4.75% | 5 yr 5.90% 7 yr 5.75% 10 yr 5.70% | 5 yr 6.55% 7 yr 6.35% 10 yr 6.35% |
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| FHA 223 (f) | Privately owned MAP lenders obtain FHA mortgage insurance ("MIP") and fund loans. No minimum or maximum amounts | Several MAP lenders are particularly active in New England and over 30 actively lend throughout the country | These loans are priced at spreads over Ginnie Maes and often track 10-year Swap rates | +Non-recourse +Offers the highest loan proceeds +Offers the longest term +No prepayment penalty after year 10 +Loan processing time can be lengthy |
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| 35 yr 5.35% to 5.90% (6.00% to 6.55% with MIP - conventional) (5.65% to 6.20% with MIP - affordable) |
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| The Interest Rates shown above are reflective of the feedback our brokers are provided in the normal course of conducting our loan placement activity. Assumes 25 or 30 year level debt service amortization. They are representative of a wide cross-section of market activity at the time this Matrix was prepared. The Capital Markets are constantly changing. You are encouraged to contact our broker professionals for up-to-date rates. | ||||||