During the MBA CREF Convention in San Diego in March it was cited that there will be approximately 23% of all commercial and Multifamily mortgages will have debt that matures in the next year. This equates to $728 Billion. At Security National we believe that this is the ideal time for Bridge lending. With the rise in interest rates having a flexible loan that allows the borrower to refinance at any point will enable loans to achieve the lower rates when the opportunity presents itself. Also, this will allow borrowers to dispose of assets with out paying large Yield Maintenance and Exit Fees.
Bridge Loans, being interest only, will offer a comparable loan constant which will fix the monthly debt service to the previous or current amortizing loan payment. With major tax advantages and other savings this will be a clear strategy for long term owners to asses the long term plan for their current assets.