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Updated almost 3 years ago,
Loan option question
Situation-I am using a non-recourse loan along with my solo 401(k) funds to purchase a rental home.
Borrowing-130,000.00
Loan term options
- Fixed rate20 year loan 6.5%
- Variable rate 25 year loan
10/1
5.9%
- Variable rate 25 year loan
5/1
5.5%
- Variable rate 25 year loan
3/1
4.9%
I am planning to pay an additional $500.00 to $1000.00 towards principal each month.
Question-Would you mind giving me an opinion on which of the 4 options would serve me best and why?