Re: How long a Mortgage? - Posted by Tim
Posted by Tim on July 09, 2003 at 06:30:50:
I pretty much deal with one bank, & most of my loans are what they call “in-house”. I can choose my term length, but it can’t exceed 20 years. The interest rate is prime + 1%, & I pay 1/2 point origination fee. The only other closing costs are for the lawyer & an appraisal, plus title insurance. The drawback is that the rate is only set for 5 years, so if prime goes up my rate would go up. This hasn’t been a problem yet, because I have either sold or paid off any that might have been due for a rate increase.
I guess I am a little different than most of the people who post here, I’m pretty conservative in the amount of debt load I will take on. I know I am limiting my growth rate, but I sleep a lot better at night if I am not highly leveraged.