How interest rates affect real estate financing

Commercial mortgage lending has benefited from continuously falling rates
Wednesday, September 18, 2013

Commercial mortgage lending has benefited from continuously falling rates because of the positive affect on debt service coverage and the corresponding increase in real estate valuation. Many mortgage and real estate investors have known nothing else but a falling rate environment. Here, Jeremy H. Wedgbury, managing director, commercial mortgages, First National Financial LP explores the possibility of a continuation of this pattern and the consequences of a rising rate environment as it specifically relates to mortgage lending and real estate valuation.

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