Rates Going Up - What is your long term strategy?

[Dennis King]

Since the Feds tipped their hat and are planning on three 1/4% rate increases in 2017, how are you going to lock in rates for longer than 5 or 10 years on a commercial loan for a SFR rental?

I am just about tapped out on residential loans and looking to get a commercial loan for longer than 5 or 10 year rate lock. Sure, the banks will amortize for 30 years, but a 5 year lock is a sure bet in favor of the bank. 

What do you suggest?

[Patti Robertson]

My personal strategy is to use all our cashflow to pay down the commercial mortgages as quickly as possible.  Beyond that, I don't worry about it too much.  1/4% is nothing.  All the economists I have listened to have said we have several more years of interest rates being below 5%.  I am far more worried about the rising purchase prices.