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Updated over 9 years ago on . Most recent reply

User Stats

54
Posts
15
Votes
Collin Smith
  • Investor
  • Florence, SC
15
Votes |
54
Posts

Rental property mortgage terms

Collin Smith
  • Investor
  • Florence, SC
Posted
I am looking at purchasing my first solo rental property with 20-25% down. My other properties with a business partner had a 15 year amortization on a 5 year term. I didn't think anything about it because the business plan had them paid off in 3 years anyway. Now that I am looking for a solo run, I am finding the 20 year amortization on a 5 year term is standard. (Or at least what is being offered on first look) Is it possible to get a longer term mortgage on rentals? It seems crazy that so many would be leveraging houses on 5 year mortgages so how are the homes being mortgaged safely? After the 5 years can they get a more traditional mortgage or is it 5 year after 5 year after 5 year mortgage? I searched the forums and it seems the 5 year is pretty standard, I just want to get an idea of what comes next.

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