@James H Webb III -  It can be whatever you two agree upon for rate and if you make monthly I/O pmnts or just balloon at the need. 

  (12, 18, or 24 month IO w/ no prepayment penalty designed to refi out into long term debt once value has been forced/property leased). 

Hello all,
I'm currently in search of a new tax preparer who has an emphasis in CA rental real estate, cost segregation, 1031, pass through s-corp to personal 1040.
If you are a CPA and accepting new clients, I woul...

I just got a HELOC on one of my propertys through Banner Bank , They were quick and the rate was 8% I/O

We have seen 30yr and recently even got a 35yr amortization with 3yr IO, but the term for these large commercial loans (typically $15-$25mm) are generally 5-10 years with some extensions available.

FL, NY, MD, CA, VA, NJ, Horizon Bank, Kalamazoo MIHuntington MI 75% LTV 5 yr IO product available.

Hi Peter, Typically with these portfolio loans you can have it either amortized over 30 years or even start out at a 10yr I/O with 20 yrs amortized afterwards.

From my numbers I'm seeing on a 30-year fixed:$183,000 Loan Amount / 7.25% Interest Rate / 30-year fixed fully am = $1,248 per monthAlso, if you choose an IO option (for DSCR thats first 10-years interest only)$183,000 Loan Amount / 7.25% Interest Rate / 30-year fixed, 10yr IO = $1,105 per monthTBH - this seems like a pretty good deal, maybe you haven't found the right DSCR lender?  

On the commercial Freddie Note the numbers were: 4.88% interest; 80% LTV loan; 10 years fixed; 10 add'l years floating for a 20-year term; 30 year amortization period; 1 year IO up front. 

For example, one of my hard money lenders also offers portfolio lending for the refinance at a 6% rate which can include up to 5 years IO with a prepay penalty of 5% in year 1 and 1% less each year until year 5 when it becomes a standard loan essentially.So the question is then, when does it make sense to use the IO option?