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Updated over 6 years ago,
Refi Com. Loan VS. Line of Credit (Best strategy to pay off Loan)
I want to compare a Refi Commercial Loan with the following terms: Amortization Term of 15 years for a commercial property at an interest rate of 5.8% Refi amount is $262,500.00
My monthly payment would be approximately $2,186.86 over the 15 years. (I am aware interest rate changes every 5 years.)
Total Interest paid in would be approximately $131,134.96.
Comparing this to: Getting an open line of credit at 5.25% Interest only. Paying the same monthly amount of $2,186.86. How much total interest would I pay in? I can find that doing it this way the loan would be repaid within 164 months or 13.67 years. (I understand the line of credit needs to be updated every 10 years and the interest rate could go up or down.)
If anyone could give me the answer to the amount of interest paid in that would be great! Can't seem to find it online. :-) Also if anyone has tried this strategy how did it work for you? Or if you have a better strategy on paying off your investment property in the fastest amount of time please explain!