I have two good faith estimates. Which Loan is better?

[Steve Moore]

I own the property and am going to cash out. I purchased a duplex with a line of credit on my home and will use the money to pay off line of credit. I have two banks (both local) that have given me a good faith estimate. For legal reasons, I would rather keep the property in the LLC name. Bank 2 is a commercial loan which would keep loan off of credit score. My current credit score is 719. Which do you think is better?

Bank 1:

LTV 75% can lock in a 30 year fixed. We have estimated the costs to be around $1,700 assuming $90,000 loan with some changes depending on whether taxes and insurance are escrowed or not. The property would need to be in your name and not LLC and you are limited to no more than 3 investment properties to be considered a casual investor.

Bank 2:

Approximate $100,000 Loan amount, NYP +1.25% (currently 4.50%), ceiling of 7.0%. The spread of 1.25% above New York Prime will be fixed for 15 years. Max LTV is 85%.

Approximate $1,750.00