Thoughts on Loan Types
I have 2 loans I’m considering. One is A. commercial loan, 15% down, 15 year term, 5.5% interest rate - after year 7 you will need to “renew” the loan (not actually refinancing it). It gives the bank an opportunity to adjust the rate. I will get this all written out on Monday. I’m relaying EXACTLY what the banker said to me.
The other is B. 25% down, 30 year term, 4.99 interest rate. This will be a long term investment, primarily interested in cash flow as opposed to market value. Both are smaller regional banks. I feel most comfortable with the people of loan option B. But they are both well known banks.
I’m buying duplexes. Bank B is insisting that it’s 25% down (across all banks), Bank A figured it out and is saying they can do it for 15% down.
I’m NOT interested in getting involved in any shady business! Have you heard of option A type koans.
Any thoughts on this?