Commercial loan terms?

[Travis C.]

I have never taken a loan out on any rentals I have purchased(I own 4 rental houses) but recently was approached about buying a multiple unit property.  I inquired at one of the banks I have accounts at but never had a loan through if they would be interested in looking at the loan. The loan would be in the neighborhood of $400-600K.  They came back with these terms:

20% down

5 year term with balloon payment

20 year amortization

Is that pretty standard for a commercial loan of this type?  I was hoping for a 15yr fixed.

I have very good credit and have had large loans that have always been paid off, I am a farmer mostly so I have large machinery loans, operation loans, etc.  Any help to my question above?

[David Dachtera]

Remember that interest rates have been at historic lows for years. They will rise eventually.

After 5 years, even with 20 year amortization, you  may hard pressed to have enough equity to refinance when the balloon comes due. Try for 10  years or more.