5.25/5.75 3 year/5 year, 20 year Ammor. financing! What's better?

[Jamison Wiersema]

Hello everyone! I was wondering if I could grab a few minutes of some of your guises time real quick to ask a quick question. I'm currently in the process of buying a single-family home in southern Illinois to be used solely as a short-term rental or Plan B full-time rental. I'm obtaining the house for a fairly under market value, and I am attempting to use as much leverage as possible. I want to save my FHA loan for a multi family unit in the future, therefore I am purchasing my single-family home as a investment property according to the bank, with all the such characteristics, 20% down, blah blah blah. My banker has told me that they can either do a 5 1/4% three-year balloon on a 20 year amortization or a five and three-quarter %, five-year balloon. Interest rate seems a little high, but I didn't know if I could give someone a call to give the numbers real quick and get your input. Thank you for all of your help over the past questions I've asked! Jamison W