I have received three Letters of Interest from three financial institutions. They are offereing 5 year fixed at 3.92% and 10 year fixed at 4.89%. The 5 year has no "yield maintenance" and the 10 year does. Am I boxing myself in too much if I decide to go with the 10 year fixed rate? We like the property and believe we would like to hang on to it for that long. Or am I crazy not to go with the 5 years and leave myself with a whole lot more flexibility.
Also, I'm told in both cases, the loan is assumable. So my question here is, if that is indeed the case, and I decide to sell the property to a Buyer who either assumes the existing loan or finds whole new financing, will that extinguish my original personal guarantee on this loan?
Thank you.
Xandrom
Also, I'm told in both cases, the loan is assumable. So my question here is, if that is indeed the case, and I decide to sell the property to a Buyer who either assumes the existing loan or finds whole new financing, will that extinguish my original personal guarantee on this loan?
Thank you.
Xandrom
