Spoke to a banker about a loan to purchase a medical office building. He offered 6 3/4% for 5 yrs w/ 20% down. Is a 5yr term normal for commercial property?
Howdy DSlackman:
You did say banker and not mortgage loan officer. You will probably get a little longer with a mortgage vrs a bank loan. You may also be able to renew and extend the bank loan at the end as well if you have a good payment history.
Keep in mind that term means the length of the note and when it is due and not the amortization schedule. A small difference in payments but over several years you will pay the note down some. Your banker is probably doing interest only and not a 5 year amortized loan.
Hope this helps
Thanks for the info