Is this loan a fair deal? I just want to make sure I am not overpaying!
 floating WSJP+1% with a 4.25% floor and a 0.50% fee with recourse 

1 yr interest only, 4 years amortization. It is a 5 year balloon and 25 year amortization on years 2-5

60% LTV, cash out refi

Old commercial building in central area. Value is in land, structure is probably only worth 1% of the total value of the property.
[{"id": "hx7l0gh", "text": "Personally I would try for 4.5 fixed if still available. Others on this sub have much more insight into this, but I would expect prime to jump by at least point this year.", "replies": [{"id": "hxgvjcx", "text": "I\u2019m not sure about other banks but the bank I\u2019m at is pretty heavy on no fixed rates unless it\u2019s 4.5%+. I\u2019ve underwritten deals going into our committee that I knew were going to get roasted by upper management for conservative fixed rates (3.85%, occasionally 4%). Better have good deposits, a decent fee, and a strong guarantee if we are sitting around a fixed 4", "replies": [], "depth": 2}], "depth": 1}, {"id": "hx7otqe", "text": "Try to lock in interest rate for as long as possible. With upcoming rate hikes, a variable rate loan can quickly ruin cashflow. I would recommend paying a little more for a longer term fixed due to market uncertainty.", "replies": [{"id": "hx7yfmb", "text": "This all the way", "replies": [], "depth": 2}], "depth": 1}, {"id": "hx86ga5", "text": "Shit, this makes me feel good, I just financed a 21 unit residential apartment complex &amp; got 3.85% fixed for 8yrs, interested only during construction &amp; a 20 year amortization term.\n\nThat deal closed in Dec.", "replies": [{"id": "hx8e01v", "text": "Nice you got in under the jump! I procrastinated on a refi I should have done 4Q21 and it cost me .3-.5%.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hx899a8", "text": "Not a bad deal, I'd try to fix the rate but as a lender I understand why they are floating with the IO.  Any reason you are going one year of IO? I'd rather try to lock in for 7 years and forgo thr one year IO unless you have a reason.", "replies": [{"id": "hx8eesg", "text": "No reason for IO. They just offered it and I didnt comment back on it.\n\nI don't really want to hold the property for more than a few years unless I decide to develop though. So interest only is attractive.", "replies": [], "depth": 2}], "depth": 1}, {"id": "hx9peno", "text": "I might be able to get you a quote in +4%, fixed for 10+, amortized over 30, limited recourse, 60% ltv, but no IO. Dm me if you\u2019d like to chat about it some more. Balance sheet lender here.", "replies": [], "depth": 1}, {"id": "hx9yabb", "text": "Balance sheet lender here with 755 other lenders on a platform", "replies": [], "depth": 1}, {"id": "hxb9nft", "text": "Terms look reasonable, but you say the value is in the land and the building is old\u2026 Does it cash flow?  Are you planning improvements or a redevelopment for the property\u2019s highest and best use, perhaps with the equity cash out?  Is 60% LTV too much, to cover debt service and still fund your plans?  You\u2019re going to have to pay the balloon in 5 years, will this still be an old dumpy property then?  You\u2019re on the hook if it\u2019s full recourse", "replies": [{"id": "hxbj9po", "text": "This. \n\nIf it's not cash flowing it's a good deal &amp; 60% LTV and recourse with an IO period signals to me it doesn't. \n\nDon't be surprised if they decline to fix the rate for a collateral based land loan.", "replies": [], "depth": 2}], "depth": 1}]