What do you think of these terms?

[Ed Poltonowicz]

I am purchasing an 8 unit residential building for $725,000. Instead of putting down 25% I am having the lender cross-collateralize for an equivalent amount on another property that I own free and clear.

The terms are 5.25%, 5 year balloon, amortized over 25 years, 1 point

Do these seem like good terms in the current environment?

[Ed Poltonowicz]

Originally posted by Steve Babiak:

Ed Poltonowicz - Did you end up having to cross-collateralize? Can you share the bank name?

We ended up doing two loans. A cash out on the building I currently own that is used as the down payment on the new building. They did not make me get new title insurance or charge any other fees on the first property so it made no difference to me whether it was cross-collateralized or two loans.