Commercial loan terms

[Brent Kiger]

All, I have a quick question about some loan terms I just received. I have a fourplex under contract and just got final approval from my bank who is writing a commercial loan for the property. They submitted a 5.25% interest rate on a 5 year balloon amortized over 20 years. Most curious about the 5 year balloon. Is this something you all are seeing as well? I was hoping for a longer guarantee on the financing but wanted to see what the market is currently doing. Any insight would be great. Thanks. Brent

[Ryan Ball]

Just curious, why go with a commercial loan versus a conforming loan with lower rate and 30 year term? We just got a 10 year term with 25 year amortization on a commercial loan.