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Started By
Message
Balloon mortgage vs fixed rate mortgage
Posted on 6/8/17 at 2:01 pm
Posted on 6/8/17 at 2:01 pm
5 years ago we took out a balloon mortgage for 60000. It is currently up for renewal with 24000 left in principal
Current loan officer offered me either a 5 year or 10 year fixed mortgage, both at 4.375% with no early penalty fee.
Could we not just do another balloon at a lower rate?
I plan on paying off the entire balance within 12-24 months tops.
What is my best option as far as least amount of interest and fees go?
Current loan officer offered me either a 5 year or 10 year fixed mortgage, both at 4.375% with no early penalty fee.
Could we not just do another balloon at a lower rate?
I plan on paying off the entire balance within 12-24 months tops.
What is my best option as far as least amount of interest and fees go?
1
Posted on 6/8/17 at 2:10 pm to CorkSoaker
take the 10yr fixed and be done with it. As a mortgage loan officer a 24k mortgage is a pain in the arse to get done. so if the same bank/loan officer is offering you those rates and terms up all over it.
Posted on 6/8/17 at 2:16 pm to hawkeye007
Ok thanks.
That's what I went with. Closing set for next week.
I tend to second guess everything.
Also, I'm a bit aggravated that even though he said there would be no closing costs or fees, there is all of a sudden an appraisal fee of $400. He said they tried not to have to order one, but because they were unable to obtain an AVM they had to.
That's what I went with. Closing set for next week.
I tend to second guess everything.
Also, I'm a bit aggravated that even though he said there would be no closing costs or fees, there is all of a sudden an appraisal fee of $400. He said they tried not to have to order one, but because they were unable to obtain an AVM they had to.
Posted on 6/8/17 at 9:46 pm to hawkeye007
I'm still having a hard time understanding why he didn't offer another balloon as an option upon renewal. Wouldn't it have been easier to renew or even extend the current loan? Then perhaps a $400 appraisal wouldn't have been necessary. And a lower rate probably. He is aware of my payment history of the current loan and I specifically told him I plan on completely paying off the remaining balance within 12-24 months.
I emailed him earlier today asking him the advantages of doing the 10 year fixed over another balloon and he just kind of skirted around the question. Planning on calling him tomorrow I guess unless I can better understand it tonight.
I emailed him earlier today asking him the advantages of doing the 10 year fixed over another balloon and he just kind of skirted around the question. Planning on calling him tomorrow I guess unless I can better understand it tonight.
Posted on 6/8/17 at 10:29 pm to CorkSoaker
He may have trepidation in placing you in the instrument for a number of reasons. He may know his company doesn't like them as a general rule. His products may not be as competitive as you might expect. Tons of reasons.
Which he should have no problem telling you in an up front manner about.
Which he should have no problem telling you in an up front manner about.
This post was edited on 6/8/17 at 10:30 pm
Posted on 6/8/17 at 10:34 pm to GFunk
Planning on calling tomorrow.
I don't want to seem confrontational or even difficult to deal with. Turns out our family members know each other very well.
I don't want to seem confrontational or even difficult to deal with. Turns out our family members know each other very well.
Posted on 6/9/17 at 8:43 am to CorkSoaker
quote:
CorkSoaker
quote:
Planning on calling tomorrow.
I don't want to seem confrontational or even difficult to deal with. Turns out our family members know each other very well.
Direct questions when it comes to what's more than likely the largest single investment and/or asset you have or will have in your life should be expected by a typical/average/seasoned originator.
Just be straightforward. It sounds like you're just curious about the product and the specifics of it. Looking for education about what's out there isn't unreasonable. You should be fine.
This post was edited on 6/9/17 at 8:44 am
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