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n. Illinois | my advice is lock the 20 years up if they offer than option. If rates fall go back and ask for the lower rate for reasonable cost or go find a new lender to get the lower rates. lock in that lower rate for as long as you can. If rate rise your protected.
If your specific situation is that the debt will be paid off in a much shorter time frame than the 20 years. IE you take the 20 year amortization but you have always been able to liquidate them in 5-10 years. Then look at a a shorter interest rate lock. IE you lock up the rate for 5 years. At year 5; rates are up 4% but you have paid back more than half of the original amount. That increase in rate isn't going to cause you any great difficulties because of the higher rate. You might have to take 6 years instead of 5 years to payoff the remaining balance. | |
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Land loan
