#108 Christina Suter: Education- Interest Rate RE Terms and What They Mean

“Do not refinance your house unless you have at least a ½ point to a point difference in interest rates. Then it will be valuable to you.” -Christina Suter

Today I am talking about interest rates in real estate and what that means for you. First, it’s very important to know what an interest rate is and how it differs from commercial real estate to single family. The standard turnaround time for when people refinance is about 5 years, however if the interest rate only moves slightly and not at least a half of a point or greater, then refinancing isn’t a good idea. Interest rates are based on two components: the T Bill Rate and libor which stands for London Interbank Offered Rate. These two factors determine the interest rates that most standard banks use. It’s important to know the math before making a decision like refinancing or purchasing property as the interest rate is what you will be paying in addition to your loan. 


Topics Covered in this episode:

  • What is an interest rate in real estate 
  • Why is it more than your APR
  • How do banks determine the current interest rates
  • What is a T Bill Rate
  • What does Libor stand for 
  • When should you refinance and when you shouldn’t 
  • Why is 5 years the standard to refinance a property
  • Always do the math 


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The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every week and learn everything you need to know to invest in real estate education and create real wealth for a lifetime.


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