Thoughts on Loan Types

[Felicia Hamilton]

I have 2 loans I’m considering.  One is A. commercial loan, 15% down, 15 year term, 5.5% interest rate - after year 7 you will need to “renew” the loan (not actually refinancing it).  It gives the bank an opportunity to adjust the rate.  I will get this all written out on Monday.  I’m relaying EXACTLY what the banker said to me.  

The other is B. 25% down, 30 year term, 4.99 interest rate. This will be a long term investment, primarily interested in cash flow as opposed to market value.  Both are smaller regional banks.  I feel most comfortable with the people of loan option B.  But they are both well known banks.

I’m buying duplexes.  Bank B is insisting that it’s 25% down (across all banks), Bank A figured it out and is saying they can do it for 15% down.  

I’m NOT interested in getting involved in any shady business!  Have you heard of option A type koans.

Any thoughts on this?

[Mark Creason]

@Felicia Hamilton

commercial is a non-conventional loan.  I have done commercial loans for multi-family, retail, office, etc.

Mark