This Week in Notes: Market Insight #1
One of the most common questions we hear is:
“Do interest rates affect the value of my real estate note?”
The short answer is: Yes — absolutely.
When interest rates in the market go up, newly originated notes offer higher returns to investors. That means older notes with lower interest rates become slightly less attractive, and buyers might offer a bigger discount.
But don’t worry — note value also depends on the borrower’s credit, the property, the payment history, and the remaining term.
👉 So if your borrower is paying consistently and the property is solid, your note can still sell for a strong price — even in a rising-rate environment.
This Week’s Tip:
If you’re considering selling your note, now is a great time to get a quote before rates climb again. A quick conversation can save you thousands.
📞 Have Questions?
When you’re ready to talk, we’re here to help.