10-year loan for $40k at 3.5% payment would be $395.54/moHrumph, you had me kind of excited, until I ran some numbers. :frown2:
Really want to get away from paying a grand a month on shop rent and utilities plus Slip & Fall insurance.
To put up a decent minimum shop is about $40K.
Seems that at the posted interest rate I ought to be able to do a ten year at around half of what I'm paying in rent each month. :smile2:
But apparently the "3.5%" rate is actually not.
I'm not willing to pay what is actually closer to 20% in the real world! :noway:
In 10 years of renting, that's $120,000 spent with nothing to show for it.
In 10 years of paying off a loan, it's $47,464.80 spent, and you own a shop.
If you're currently paying $1000/mo for rent you could keep paying the same amount and have a $40k loan paid off in 3-1/2 years. The interest you would pay over the life of the loan would be less than 3-months rent with your current arrangement.