So Im looking at my Loan info right now in front of me. I have say 3 of these so far like this with my bank.
Principal Amount $99,200 , 179 consecutive payments of principal and interest $701.32 every 5 years interest rate is based off US Prime rate plus 1% and year or 2033 will be balloon payment of $37,120. I get these lines of credit/ mortgages off my investment properties that are rented. Any Advice would be great with bettering my situation or if im good where im at.
@Joshua D. What’s the amortization schedule? Sounds like a commercial loan, is it on a commercial property ?
@Caleb Heimsoth what is a amortization schedule? I think i put that in post? Yes it says its a business loan. Its all under are LLC and investment properties. Commercial real Estate Mortgage
@Joshua D. it’s how long the loan is for. So if it just started you have a 15 year amortization schedule with a balloon on it and a 5 year fixed rate, at which point it’ll adjust.
I personally probably wouldn’t do a loan like this but you didn’t say if it’s a commercial property or not.
@Caleb Heimsoth It says Commercial real Estate Business, Its on are rental properties. Is there better options out there? Ive looked and most wont do investment properties and if they do ive heard they only do 10 mortgages and i think they will do as many as i want. With my collateral and everything
I didn't punch this into a mortgage calculator to confirm but it looks like :
20 year schedule
15 year balloon
ARM every 5 years at prime plus 1%
Is that right? Seems reasonable to me. I have a 10 year balloon and I'd venture to guess that's what most people dislike most because you're forced to either refinance or pay the sum.