SBA Loan fixed vs variable

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March 18, 2024

by a searcher from Georgia Institute of Technology in Seattle, WA, USA

Given prime rate has remained stagnant, has anyone opted for an SBA variable rate over the 10 year fixed rate? What were the terms and have you considered making additional principal payments?

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Reply by a searcher
from The University of Michigan in New York, NY, USA
Didn't end up closing the deal, but I talked with a lender about doing variable middle of last year, got the sense some people were opting for that. Unless you believe rates are spiking from here, you end up saving a few bps in annual interest and don't need to pay refi costs when rates come down. Obviously long term it's risky though as you never know what might cause rates to rise beyond already high levels, at least relative to more recent history, not the 80s :)
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Reply by a searcher
from New York University in New York, NY, USA
Curious what other people think about this as well. In real estate, My thoughts is Fixed is always the way to go. If rates goes down, I can always refi, and if rates goes up I'm safe. But this is more with real estate so curious what other people opinions are on SBA
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