5% AVR Rate on mortgage

[Tom Keith]

hello. Just a question to see if I am doing this deal right. I placed my investment and capital with a small local bank and have two deals with them so far. This last one is the first buy and hold and the mortgage is a variable rate after three years with a base of 5% from Prime plus 1%. And for 20 Years. I had planned on a 30 year to cash flow better but my banker said that is the best they can do since they are not that big. I don't have a problem with the 20 year note as it pays off 10 years sooner but I have never had a variable rate and it scares me a little. Last to note, this is in LLC, not a personally owned property. Thanks ever so much. Tom & Roni.