- Introduction
- Acknowledgements
- 1: Getting Ready
- 2: The Costs of Space
- 3: Understanding Credit
- 4: Professional Services
- 5: Finding Space
- 6: Residential Leases
- 7: Commercial and Industrial Leases
- 8: Buying Real Estate
- 9: Types of Mortgages
- 10: The Mortgage Application
- 11: Ownership Models
- 12: Purchasing Alternatives
- 13: Chicago Zoning Ordinance
- 14: Chicago Building Code
- 15: Chicago's Neighborhoods
- 16: Property Taxes
- 17: When You Find a Property
- 18: Inspections
- 19: After Moving In
- 20: Insurance
- 21: Utilities
- 22: Rehabbing Your Space
- 23: Safe and Healthy Spaces
- 24: Green Practice
- 25: When Disputes Arise
- 26: Space Emergencies
- 27: Facility Development Planning
- Bibliography
15-year Fixed-Rate
This is a shorter version of the traditional 30-year fixed-rate loan.
Pros
Again, stability and predictability are considerable benefits. In addition, you pay down the principal relatively faster when compared to longer-term loans of 20 or 30 years. The 15-year fixed-rate loan lets you own your space debt-free in half the time, and for less than half the total interest cost of a 30-year fixed-rate loan. Interest rates are usually lower than those offered on 30-year fixed-rate loans. Government-backed loan programs such as the VA Loan may also have 15-year programs.
Cons
Higher monthly payments make these loans more difficult to qualify for than longer-term mortgages. This limits the number (and cost) of properties you can afford to buy. In addition, your monthly payments can be roughly 15-30% higher than payments you would make with a 30-year loan. If you are considering a commercial property, this is the longest loan term you can expect.