I have several apartment bldgs with 20 year amoritized loans that have five year balloon payments. Is anyone else worried about refinancing five yeards from now when interest rates may be 20 perecent?
Gosh, I hope that interest rates aren’t 20% in 5 years.
They can’t hold the interest rates down forever, but i don’t know what you can do about it. Unless you can pay those notes off, you are going to be refinancing every 5 years or so on a commercial loan.
Want something else to worry about? If inflation goes crazy, the banks won’t give you a fixed rate of 20% for 5 years when you refinance. So your rate will be going up every 6-12 months on the new loan.
So why do you hope the interest rates is 20 percent?
Typo, hunter. I corrected it.
Although, if interest rates are 20%, the folks with low fixed rate mortgages are going to do well.
I want to be one of them on the low end doing well Tater.