15 yr loan vs 30 yr loan

2 Replies

I know that in my personal investment im looking for 30yr mortgages on rentals but what about commercial 15yr. Is it ok to do a ballon 5yr ballon over 15yr? Any advice would be greatly appreciated!

Money is cheap now.

I'd always choose to amortize fully if the rate is close.

If you save 1% with the balloon and need to refi in 5 for 5% higher the 1% savings doesn't look so good.   

What if the bank only loans up to 15yr for business LLC? This is what type of company we have at the moment. It still produces cash flow with 15 yr. but I don't like that if in 5yrs the rate goes up to 10%