Should We Lock-In 3-year Money at 7.15%?

mobile home university
1

Friends -

We’ve got a basic dirt-road park with a ~$700k mortgage to refinance this month. The refinancing is just a formality. About this time every year our bank asks us if we want to roll-over at the 1-year rate, or to lock-in for a longer time period. They’ll even let us have an extra month or so to think about it; there is no ‘baloon’ or ‘rush’ here.

We are probably not a candidate for a conduit loan given the lack of pavement or any amenities on our property, and the s fully-amortizing over 15 years either way.

Any thoughts on which option we should take? Or is there some other/better source for a mortgage on a property such as ours? Has anyone recently gotten financing on a similar 1-star park, and if so, what did you pay for your money?

Many thanks,

-jl-

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Jefferson

I have not financed any 1 star parks, but 7.15% money for 3 years sounds good to me. I would not ruin the relationship unless you can get low 6% money and 5 plus year+ call and make new banker friends that will help you in the future. I may not even ruin the relationship then. As you know we need banks /lenders/friends with $$ in order to operate and grow our business.

My1/2 cent

Rick Ewens

Post Edited (04-06-11 10:32)