Hi all,
I have a construction loan that I recently extended. It is on a variable rate. I usually try to fix all my interest rates, but not this one since it is short term.( Hopefully ). When I extended the note lately, my interest was at 4.25 %. As I read extension paperwork, it said that the note was variable, but it would never go below 4.25%. I said, " now wait a minute, is it variable or not? " She looked me and said its variable, but the bank won’t go any lower to protect itself. Has anyone seen this. Its not a big loan or timeframe for me, so its not a big deal, just kinda surprised me. By the way it is a local bank, not a big one.
DB