September 07, 2010 03:45PM
When the subject of the day is rates for commercial residential mortgages, I must once again quote the famous former pitchman for the bankrupt electronics retailer Crazy Eddie stores: “These prices are insane.”
The rates of the day are those being offered by savings and commercial banks to owners of rental apartment buildings for fixed-rate, first mortgages in the New York metro area.
Today, an owner of any apartment building can secure a fixed-rate 5-, 7- or 10-year term at rates below 4 percent. Yes, I said, below 4 percent for rental buildings in the New York City metro region.
In most instances the most active lenders are offering 5-year, fixed-rate mortgage with a 30-year amortization at rates in the 4 to 4 ¼ percent ranges. For low-leverage well-located properties, mortgage rates are below the 4 percent threshold.
These are the lowest rates for first mortgage financing in more than 30 years.
The most active lenders offering attractive financing include New York Community Bank, Dime Savings Bank of Williamsburgh, Investors Savings Bank and Sovereign Santander. In certain instances comparable rates are being offered to existing clients by other banks which include Capital One Bank, Signature Bank, M&T Bank and JPMorgan Chase.
Joining the ranks of offering rates in the low four percent range are government-sponsored enterprises, Fannie Mae and Freddie Mac and insurance companies.
In 2009, Fannie and Freddie together accounted for over 80 percent of the total multi-family lending volume nationwide, with Fannie accounting for $15.9 billion of multi-family deals and Freddie providing $15.2 billion, followed by FHA and Ginnie Mae with $5.8 billion in mortgage financing.
Don’t miss this window of opportunity and evaluate your options for financing at these record low interest rates.
Michael Stoler is a columnist for The Real Deal and host of real estate programs “The Stoler Report” and “Building New York” on CUNY TV and on WEGTV in East Hampton. His radio show, “The Michael Stoler Real Estate Report,” airs on 1010 WINS on Saturdays and Sundays. Stoler is a director at Madison Realty Capital as well as an adjunct professor at NYU Real Estate Institute, and a former contributing editor and columnist for the New York Sun.