PIDA Interest Rate drop for the 3rd Quarter of 2021
Below are the updated 2021 third quarter interest rate options for qualifying PIDA loan applications. These rates are in effect for loan applications received through September 30, 2021.
For Real estate loans financing eligible land and building costs, borrowers will have the following interest rate options:
For term loans with a regular amortization;
- Fixed interest rate for the full termof the loan (up to a 15-yr. period), set at the current 10-year treasury yield + 100 basis points. Based on the current 10-year treasury yield, the fixed rate option is 2.5% for the life of the loan.
- Fixed interest rate for a seven (7) year periodset at the 10-year treasury yield. After seven years, the rate will resetto the then-current 10-year treasury yield. Please note, the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current 10-year treasury yield, the rate for the initial (7) year period is 1.5%.
For 10-year term loans with a 20-year amortization period;
- Fixed interest rate for the full termof the loan (10-yr. period). This option is calculated using the 10-year treasury yield +100 basis points. Based on the current 10-year treasury yield, the fixed rate option is 2.5% for the life of the loan.
- Fixed interest rate for a five (5) year periodset at the 10-year treasury yield. After five years, the rate will resetto the then-current 10-year treasury yield. Please note, the reset rate is limited to a 200 basis point increase/decrease. The reset rate is then fixed for the duration of the loan. Based on the current 10-year treasury yield, the rate for the initial (5) year period is 1.5%.
For Equipment loans – 2.5% fixed rate for the full term of the loan.
Need a loan, call Jim P. for more information 484.352.4175.