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Updated almost 9 years ago, 03/10/2016

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6,115
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5,047
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Brie Schmidt
Agent
  • Real Estate Broker
  • Chicago, IL
5,047
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6,115
Posts

WWYD: 5 year commercial at 5% or a 30 year fixed at 7.25%?

Brie Schmidt
Agent
  • Real Estate Broker
  • Chicago, IL
ModeratorPosted

I am not a economic expert or do I really follow market trends, so I would like advice from people smarter than me on this topic like @Ben Leybovich and @sean

We have pretty standard commercial financing on 1/2 our portfolio.  They are 5 year loans on a 25 year amortization at 5%

I really don't like these loans because in 5 or 10 years the rates could be double and I could find myself in an unpleasant situation.  

I just learned of a possible new loan program on commercial which would be a 30 year fixed at 7.25% 

The rate is obviously higher but to lock it in for 30 years would be fantastic.  

What would you do?

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Second City Real Estate
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