what are typical apartment mortgage terms?

[Tab Teehee]

well after a long long year of rehabbing a 20 unit property, it's time to convert my construction loan to permanent financing. The local bank that did the construction loan has presented me with two different loan choices, and neither sound as good to me as I had hoped.

Here are the details....

20 unit property ARV of 1.25M

Construction loan balance 705k

Currently 70% occupied but we have several applications being processed now, so could be 100% by closing.

Bank is offering:

20 year amortization with a balance of $705,491.55. The interest rate choices are:

* 3 year adjustable 5.99% and a 5.99% floor (based on Wall Street Journal prime rate + 0.49%) Payment will be aprox $5055/month

* 5 year adjustable 6.25% and a 6.25% floor (based on Wall Street Journal prime rate + 0.75%) Payment will be aprox $5160/month

* Accrued interest will need to be paid at closing on the construction loan, if no changes $3011.63 as of 5/31/19(this would increase if the $10,500 of undisbursed funds are disbursed.)

*Either one of these options will come with a $2500 origination fee for the long term loan.

*Commercial loan document prep fee $295

*Title work will need to be updated again.

*All fees will have to be paid in cash at closing (cannot be added to the loan)

Thoughts?