15
Looking at two different bridge loan options for a strip mall deal
I had to choose between a local bank offering a 7.5% rate with a 90-day close and a broker who found a 6.9% rate but with a $15k upfront fee, and I went with the broker because the math worked out better over the 18-month term, but has anyone else faced a similar fee-versus-rate tradeoff?
3 comments
Log in to join the discussion
Log In3 Comments
ryanf662mo ago
Yeah, I did that math once and got it totally wrong... ended up paying more in fees than I saved on the rate. Good on you and @evan_nguyen23 for actually figuring it out. That $15k upfront hurts, but over 18 months, the lower rate definitely wins.
8
evan_nguyen232mo ago
Did the same thing last year and saved a few grand.
0
jamiegreen14d ago
Watch the fine print on those deals too. Some lenders will let you roll the buydown cost into the loan but then the savings aren't as good. Always run the numbers both ways before you commit.
4