20 vs 25 year amortization

[Abraham Anderson]

I'm in the process of purchasing a 20 unit complex. The bank has given me 2 choices. Option 1 is a 20 year amortization 4.8% vs a 25 year amort @ 4.99% (both with a term of 7 years). The payment would be $7,624.87/month for option 1 and $6,832.89 for option 2.

Which would you go with, and why?

[Jeff Kehl]

@Abraham Anderson I can only find 5/20 loans in my area and I would love to get some 25 year amm loans. It increases your cashflow and flexibility. You can always pay the principle down an extra $800/month if you want to and have the discipline to. But if you are short $800/month for 2-3 months on the 20 year they can and probably will foreclose on you and take the property.

Since you are not far from me, what bank are you using?