Average Mortgage Rate

Calculation: Average Mortgage Rate = Sum of Mortgage Rates / Number of Mortgages

What is the Definition & Importance of ยดAverage Mortgage Rateยด:

This KPI helps investors to evaluate if properties require refinancing. Specifically, investors can compare their mortgage rates (by turning it into an average if they have multiple properties) to the current index mortgage rate. Our hotel management company always suggests making this comparison,ย  as it will tell if the property is better off being refinanced.

Why? Refinancing will allow you to save money (i.e. lower interest rates on existing loans, and reduce monthly payments) as well as increase the rate at which you build equity in your property. This is a highly recommended consideration in managing your investment.

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About the Author:

As CEO and Founder of XOTELS, Patrick Landman has made it his mission to turn hotels and resorts into local market leaders. XOTELSยด diverse expertise and deep-knowledge across revenue management consulting, hotel management, and hotel consulting, enables us to drive results for independent boutique hotels, luxury resorts, and innovative lodging concepts. Below you will find opinion articles written by Patrick Landman.