What is the cost of a ADU loan?

ADU loans are types of mortgages, either in first or 2nd position, My tax experts tell me they are therefore tax deductible either under the mortgage interest deduction or as a business loan expense for your rental business. Every individual has a different tax rate, but that generally makes the cost of an ADU around 3-5%, regardless of the effective interest rate. Don't forget to adjust your withholdings!