Interest Rate Information for the Freddie Mac Small Balance Loan Program
Freddie Mac Optigo Small Balance Loans have some of the most competitive interest rates on the market, especially considering that they allow investors to take out loans as small as $750,000. Fortunately, the SBL program offers a variety of both fixed and floating-rate mortgage options. This can be beneficial, as different investors may have different investing timelines, and thus different needs. For instance, an investor who wishes to sell the property within 3-4 years may opt for a lower-cost, floating-rate loan, while an investor who wants to keep the property for 10+ years may want to take out a fixed-rate loan in order to reduce their risk exposure.
Rates vary between Top, Standard, Small, and Very Small Markets. In addition, pricing is further broken down by region, as Freddie Mac has divided the U.S. into 5 distinct regions for the purposes of SBL pricing. Right now (July 2019), interest rates for Freddie Mac Small Balance Loans range from 4.08% to 5.16%. We have broken down rates by region and market size below:
Northeast
Delaware, Pennsylvania, New Jersey, New York, Rhode Island, Connecticut, Massachusetts, Vermont, New Hampshire, Maine
| Market Tiers | 5-Year Hybrid | 7-Year Hybrid | 10-Year Hybrid | 5-Year Fixed | 7-Year Fixed | 10-Year Fixed |
|---|---|---|---|---|---|---|
| Top Markets | 4.23% | 4.37% | 4.57% | 4.23% | 4.42% | 4.57% |
| Standard Markets | 4.51% | 4.52% | 4.61% | 4.66% | 4.62% | 4.66% |
| Small Markets | 4.90% | 4.76% | 4.95% | 4.90% | 4.86% | 5.00% |
| Very Small | 5.11% | 4.95% | 5.11% | 5.11% | 5.05% | 5.16% |
Southeast
Arkansas, Louisiana, Mississippi, Tennessee, Alabama, Georgia, Florida, South Carolina, North Carolina, Virginia, West Virginia, Maryland
| Market Tiers | 5-Year Hybrid | 7-Year Hybrid | 10-Year Hybrid | 5-Year Fixed | 7-Year Fixed | 10-Year Fixed |
|---|---|---|---|---|---|---|
| Top Markets | 4.18% | 4.42% | 4.47% | 4.23% | 4.47% | 4.47% |
| Standard Markets | 4.51% | 4.57% | 4.61% | 4.56% | 4.67% | 4.66% |
| Small Markets | 4.85% | 4.71% | 4.70% | 4.85% | 4.81% | 4.75% |
| Very Small | 5.06% | 4.90% | 5.06% | 5.06% | 5.00% | 5.11% |
North Central
North Dakota, South Dakota, Nebraska, Kansas, Missouri, Iowa, Minnesota, Wisconsin, Michigan, Illinois, Missouri, Indiana, Ohio, Kentucky
| Market Tiers | 5-Year Hybrid | 7-Year Hybrid | 10-Year Hybrid | 5-Year Fixed | 7-Year Fixed | 10-Year Fixed |
|---|---|---|---|---|---|---|
| Top Markets | 4.18% | 4.42% | 4.57% | 4.28% | 4.47% | 4.57% |
| Standard Markets | 4.51% | 4.57% | 4.66% | 4.56% | 4.67% | 4.71% |
| Small Markets | 4.85% | 4.71% | 4.70% | 4.85% | 4.81% | 4.75% |
| Very Small | 5.06% | 4.90% | 5.06% | 5.06% | 5.00% | 5.06% |
South Central
Montana, Wyoming, Colorado, New Mexico, Texas, Oklahoma
| Market Tiers | 5-Year Hybrid | 7-Year Hybrid | 10-Year Hybrid | 5-Year Fixed | 7-Year Fixed | 10-Year Fixed |
|---|---|---|---|---|---|---|
| Top Markets | 4.18% | 4.42% | 4.57% | 4.28% | 4.47% | 4.57% |
| Standard Markets | 4.51% | 4.57% | 4.66% | 4.56% | 4.67% | 4.71% |
| Small Markets | 4.85% | 4.71% | 4.70% | 4.85% | 4.81% | 4.75% |
| Very Small | 5.06% | 4.90% | 5.06% | 5.06% | 5.00% | 5.06% |
Western
Washington, Oregon, Idaho, California, Nevada, Utah, Arizona, Alaska
| Market Tiers | 5-Year Hybrid | 7-Year Hybrid | 10-Year Hybrid | 5-Year Fixed | 7-Year Fixed | 10-Year Fixed |
|---|---|---|---|---|---|---|
| Top Markets | 4.08% | 4.27% | 4.42% | 4.23% | 4.57% | 4.47% |
| Standard Markets | 4.56% | 4.52% | 4.66% | 4.71% | 4.67% | 4.76% |
| Small Markets | 4.85% | 4.71% | 4.9% | 4.9% | 4.86% | 4.95% |
| Very Small | 5.06% | 4.90% | 5.06% | 5.11% | 5.05% | 5.11% |