Federal Reserve Chair Janet Yellen expects the Fed to raise interest rates several times a year through 2019 in order to meet economic goals of increasing employment and maintaining stable inflation.
It is not known exactly when the rates will be raised or how high the rates will rise. This all depends on how the economy is performing. The Fed indicated that it aimed for three quarter point increases in 2017. Although the Fed appears to move slow in raising rates, they are indicating multiple interest rate hikes in the next few years.
Ensure you are Receiving the Best Rates
As a multi-family property owner, there is very little you can do to fight the rising interest rates. However, as you are preparing to acquire more properties or refinance your existing ones, make sure you ask you broker about Fannie Mae, Freddie Mac, and FHA’s green loan programs that could reduce your current interest rate by up to 30 basis points. By making energy improvements, not only will you save $1,000s in annual debt services, but you will also reduce your property’s annual operating expenses by 15-20%.
EnergyLink holds proper certification, and uses program approved energy modeling software to ensure our energy improvements perform properly.