Short answer
Bridge loan rate caps cost 0.5 to 3.0 percent of loan amount depending on strike level, cap tenor, and prevailing SOFR volatility.
Where do sponsors source caps?
Banks (often the originating lender), specialized cap-providers, and major dealer banks. Quoting two or three providers typically produces 5 to 20 percent price variance on identical cap terms. The cap budget should be locked into the deal's pro-forma sources and uses early, surprises here can sink underwriting.
Sources
- Secured Overnight Financing Rate (SOFR) · Federal Reserve Bank of New York · daily
- Quarterly Survey of Commercial/Multifamily Mortgage Bankers Originations · Mortgage Bankers Association · 2026-Q1