Are these lending terms reasonable?
I feel like every day presents itself with new 'firsts'.
We purchased our first Buy and Hold (rental) property into an LLC and are now looking to refinance.
We qualified for a loan under terms that have me confused. I realize that LLC lending will be very different from personal loans so I'm wondering if this is normal.
- 4.75% Interest Rate
- 3 year balloon payments
- Closing costs of 6% loan value for a property we've already closed on
This would bring the effective rate closer to 6% total on the loan. Which I'm sorta ok with. But is it normal to have just 3 year terms?
What about after 3 years? The lender SAYS he expects the loan to renew but I've learned in the military to only trust signed documents.
I'd love to hear your feedback on this and experience regarding LLC loans