Financing quote from a bank -- is this good???

[Saran Mandhadapu]

Hi,

I am purchasing a multi-family unit for $175,000. Here are the loan terms I received from a bank, please let me know if this is good in current market. This is a commercial loan.

Interest Rate fixed for 5 years = 4.9%

At the end of 5 years, the rate fixes again for another 5 years

Loan term = 20 years

Loan amortization = 20 years

Down payment = 20%

Location = York County, PA

No pre-payment or refinance penalty and no balloon payment.

[Patsy Waldron]

Terms seem pretty good, especially the interest rate- some people are not even getting this rate on residential loans! As Andrew said, check what the rate adjusts to after the first 5 years- you'll want to make sure there is a ceiling (e.g. no higher than prime + 1). Also find out what the loan fees are.