EPISODE · Jul 7, 2019 · 13 MIN
ASK MIKE MONDAYS - Michael, interest rates are incredibly low; should I lock in a long term fixed rate or an adjustable rate? What would you do?
from Old Capital Real Estate Investing Podcast with Michael Becker & Paul Peebles
Michael explains that todays low rate environment can benefit many apartment buyers with lower debt costs, BUT will exponentially increase the yield maintenance prepayment penalty costs for sellers. Lower rates may mean more loan assumptions in the future to avoid the yield maintenance cost.
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ASK MIKE MONDAYS - Michael, interest rates are incredibly low; should I lock in a long term fixed rate or an adjustable rate? What would you do?
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