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Updated about 9 years ago on . Most recent reply

Account Closed
  • Residential Real Estate Agent
  • Knoxville, TN
8
Votes |
41
Posts

Commercial Loan: A steal, a deal, or middle of the road?

Account Closed
  • Residential Real Estate Agent
  • Knoxville, TN
Posted

I have a multifamily 'commercial' (6unit) under contract. I am somewhat new to loans. I just got a loan commitment letter with following terms. What do you make of the terms? Any advice or good questions to ask before committing? Thoughts on the rate choice?

-Amount= ~$270K

-% Down= 20%

-Fixed Rate Choice of the following: A) 4.50% for 5 yrs. B) 4.75% for 7yrs. OR C) 5.25 for 10yrs

-Amortization= 25 yrs

-Origination Fee= 1% (~2700$)

-Loan in LLC (single member) name by I do guarantee it personally

Thanks in advance

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