Key takeaways
- Match loan term to hold period.
- Compare APR not rate.
- Plan refinance windows in advance.
- Diversify lender relationships.
- Stress test every loan at +200 bps.
Core concepts
Term matching
30y fixed for buy-and-hold; bridge for value-add; balloon only with refi certainty.
APR vs rate
Fees and points move APR 25–75 bps.
Refi planning
5–7 year cycle on residential; 3–5 on commercial.
Lender diversification
3+ relationships per asset class.
Step-by-step framework
- 1Map hold period before shopping.
- 2Compare APR across 3 quotes.
- 3Document refi ladder.
- 4Stress test +200 bps.
- 5Annual lender review.
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Common mistakes to avoid
- Choosing lowest rate without checking fees.
- Balloon without refi plan.
- Single-lender dependence.
Frequently asked questions
APR vs rate?
APR includes fees — true cost.
How many lender relationships?
3+ active per asset class.
Stress test threshold?
+200 bps current rate.
Annual review?
Yes — refinance opportunity scan.
Action checklist
- ☐Hold period mapped.
- ☐APR compared.
- ☐Refi ladder.
- ☐Stress test.
- ☐3+ lenders.
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