Hypothetically, if you were borrowing a couple Mil right now and was offered a 5 year lock @ 6.75% fixed or a prime+.5(5.25 floor - 9 ceiling) what would you choose and why?
the locked rate because inflation is a coming with the stimulus dollars that will flood the streets. but what do I know?
So 40 of you got no opinion on rates or no idea? Peapod, old school thinking might feel that way if we were the only country printing money like mad. I see the recession is world wide and don’t see the end of it by the end of the year like the Fed does. A jobless recovery, WTH is that. Without jobs, there can be no recovery, IMO. The gov has borrowed so much, I don’t think they want to see interest rates go up. But i could be wrong.
quote:
Originally posted by PeaPodthe locked rate because inflation is a coming with the stimulus dollars that will flood the streets. but what do I know?
ditto
“Sighs Matters”
GW 205
F200 Yam
I’d go with the locked. In my business, we renegotiate our locked loans every few years anyways. If this is a business loan, and not a residential super jumbo, the banks want your transactional business and, to keep it, they have been willing to re-price our fixed business loans when rates have fallen substantially (as recent years).
It works for us here in Charlotte.
Yes stickman, it’s commercial money to refinance my shopping center and build a new bar in it. What kind of rates are you looking at. Several banks hit me @ 7% and Wachovia/Wells Fargo only wants to do a 3 yr term. 6.75 isn’t terrible, but you’re kind of at their mercey. The deal I just accepted is with a small bank and I’m really looking forward to knowing who’s behind the counter and they know me.
Actually our current loan is around 6%- but rates were lower a while ago. It actually is with Wachovia. There’s quite a few community banks here and they approach us often. We usually get their quotes and Wachovia seems to always match them, or do slightly better. I think the smaller banks want high quality loans that they keep and also want to pick up the individual partners personal banking. Wachovia/BofA seem interested in keeping us happy on our loans so they can keep the transactional business, like credit card usage.
Good luck!!!
I would lock in rate as rates will go up due to inflation. Gov’t does not want them to go up but they will not be able to sell bonds unless they pay high rates. Therefore, they will have to charge high rates and printing money is always inflationary even if econ does not recover. Just ask Brazil or Iran.