To residential loans or one commercial loan?

1 Reply

Hi,

I have a six unit property that is deeded as two side-by-side residential three family house.  I can get 2 residential loans or one commercial loan.  Interest rate is about the same except the Commercial interest rate gets reset every five years. The terms are 20yrs versus 30yrs for residential.

My question is does it make sense to do one commercial loan instead of having 2 residential loans?

@Kash Chau I prefer to get it all under one loan just for convenience. I've also done it before where I have multiple loans, and it works. I probably saved a little bit of money on the multiple loans, but I think 5 years is enough time to figure out if you want to go for a longer term loan. Good Luck