Updated about 7 years ago on . Most recent reply
Are there caps on ARMs?
I am working with a lender on a commercial loan to buy residential rentals. I see plenty of upsides.. And a few huge downsides. First.. no 30 year loan terms. Not a huge deal. Second. Balloons payments. A reputable broker in the area had explained to me that balloon payments are pretty rare. And He said I had mistaken the term balloon payment for what is actually a bridge loan. The biggest downside that I am seeing is the adjustable rate.... I am completely new to commercial, as I have only used residential. Can somebody explain to me how the investor can play things safe when taking out commercial loans? What am I looking for, for my protection?