In late May of this year, the signs were already rising with the dry hot sun of interest rate increases. With them went the costs of interest rate caps.
"We had somebody who had an interest rate cap, but when they signed the deal two months ago to when they could get the deal closed recently, the price tripled," Thompson Coburn partner Josh Mogin told GlobeSt.com at the time. "They had to take $1.2 million to buy a cap they were planning to spend $300,000 to $500,000."
So, between 2.4 times and 4 times as much as had been planned. Months have marched on, as have large interest rate increases the Federal Reserve has instituted since to fight inflation. Now?
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