What is your opinion - Commercial loan terms

[Jonathan B.]

Hi Guys,

pulling cash out of 2 sfr, Local bank is offering 6-6.25% loan, 20 years @ 5 year fixed, adjusts every 5 years..

What is your opinion on what ive been offered?

is it standard / expensive?

thanks

[Eric Johnson]

@Jonathan B. It totally depends on what your needs are. You can really only go to a local bank or credit union if your income and DTI supports the loan requests as they calculate global borrower financials (I know this because this is what I do for a living). However, if they're only using the asset to qualify and not looking at personal income. I think 6.50% is accurate pricing, especially in today's market. However, I do 30 year amortizations and 10 yr fixed term... 20 year am sounds a bit short.