Hello everyone. I'm purchasing a medical office building and the lender is offering me 2 loan options. 4.25% fixed for 5 years, or 4.75% fixed for 7 years. How high would interest rates have to be in five years to justify paying an extra .50% in the first five years?
Thanks for your help.
It depends on the loan terms after the fixed period is up and the overall length of time you plan on keeping the loan.