Strategy for 3,5,7 yr loan term for Buy/Hold Investor

[Michael P.]

I'm seeing commercial loan terms for 3,5,7 maybe 10yrs at 20/25 yr amort. Even though the rates are great now..when these come due, most likely rates will be way higher. What are some strategies if you are a buy/hold investor to plan for the inevitable rate increase? Pay off? refinance?

[Jon Holdman]

Well, if you like 30 year fixed rate loans, you like government interference, no matter what you say. Left to itself, "the market" wouldn't offer these. Even OO loans in Europe, which doesn't have government interference in this market, are ARM with fixed rates for only a few years.

Keep looking, though. You probably won't find banks offering 30 year, fixed rate, portfolio NOO loans, but 15 or 20 year products do exist. At least around here.