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Taking a look at the chart below, one can notice the recent upswing in the 10-year yield.  Tax changes seem to be providing exuberance in both the stock and bond markets.  That (along with the expected interest rate increases by the FED this year) is providing upward pressure on rates.  Although long-term rates are still quite benign, those loan products that adjust are causing those affected to feel some pain in their pocketbooks.

I suspect clients will be looking for strategic alternatives to save money where they can.  Refinancing out of HELOCs (as the interest is no longer deductible) will increase.  All of us should be counseling clients on intelligent steps to overcome the impact of the tax law changes and the increasing interest rate environment.

For my clients, I review all of their mortgages on all of their properties to ensure they are efficient and to determine what moves can improve the client’s situation.  Teaming up with professionals to protect your client relationships is critical this year.  This is why I have been pushing meetings with your best strategic partners.  Build your team to protect your clients which will lead to move referrals and introductions to others seeking that same support.

If you have questions with this approach, then feel free to call me.  As always, I am happy to sit down with you and/or your teams to strategize on ways to provide the best service to clients.  Have a good week.

See the table below for approximate interest rates.


Type Rate Fixed Term
Apartments 4.175% – 4.770% 3 to 10 year (30 yr amortization)
Commercial 4.495% – 5.070% 3 to 10 year (25 yr amortization)
SBA Lending Call for Options Call for Options
SV Commercial Lending