Is the Inverted Yield Curve Your Ticket to Lower Prepayment Premiums?

2019-10-03T20:38:44+00:00By |Financing|

Now might be the ideal time to critically review your multifamily investment schedule to determine if any of your loans are ripe for refinance. Many multifamily agency loans (Fannie Mae and Freddie Mac) contain yield maintenance or defeasance (“YM/D”) prepayment penalties.  Simplistically speaking, the investor who funded the agency loan is looking for a yield to maturity – the amount of interest that would have been paid if the loan was held to maturity.  If you’ve ever requested a payoff statement from your loan servicer on a YM/D penalty loan, you may have been astounded at the size of the