I am coming up on a balloon payment for an 8 plex with a value around 1mm. The bank is pushing a 5 year term hard. With interest rates where they are, I would love a longer term. Any ideas on what I should reasonably expect/ask for? I shop banks relatively often but have been happy with this bank otherwise so I don't want to push if I can't find it anywhere else. TIA
Investor · San Diego, CA · Member since 2019 · 326 posts · 266 votes
5y
I understand the loyalty, but the financing must fit your needs. If you can present them with better financing and ask them to at least copy that, I see nothing wrong with it. Just like you they understand that it must make god business sense. If they can offer you that, it is no one's fault if you finance elsewhere.
Investor · San Diego, CA · Member since 2019 · 326 posts · 266 votes
5y
I understand the loyalty, but the financing must fit your needs. If you can present them with better financing and ask them to at least copy that, I see nothing wrong with it. Just like you they understand that it must make god business sense. If they can offer you that, it is no one's fault if you finance elsewhere.
Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
5y
@Tyler HOOD If you are betting on interest rates I'd consider the shorter term a decent bet. Analyze the pay down and see what you have in terms of equity at the end of the 5 years...then try that out at various interest rates. You probably have more protection than you think. What is your rate now?