I did an 8-year balloon with my first house. I knew I'd likely be there less

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Apr 25, 2016
10:37:32am

frontrowcougar All-American

I did an 8-year balloon with my first house. I knew I'd likely be there less

than 5 years (because of location, job, size of house, and size of family), but got an 8-yr balloon to build in some flexibility. Saved me some money on interest, worked out perfectly. Sold after 4 years.

EDIT for clarity: First 8 years were a fixed interest rate, followed by a balloon.

This message has been modified

Originally posted on Apr 25, 2016 at 10:37:32am

Message modified by frontrowcougar on Apr 25, 2016 at 10:40:06am

Message modified by frontrowcougar on Apr 25, 2016 at 10:40:23am

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frontrowcougar

Bio page: frontrowcougar
Joined: May 21, 2007
Last login: Mar 17, 2020
Total posts: 22,487 (540 FO)

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Messages

Author

Time

Anyone ever done a 15 year balloon mortgage?

Slim The worst

4/25/16 10:28am

Rates are good. Now is the time for a fixed.

Mister P

4/25/16 10:36am

Not really. You pay a premium for the 30 yr fixed and no one stays in homes

Iman23

4/25/16 10:43am

If you feel like you're in a "30-year home" then go for the 30-year mortgage,

4/25/16 10:45am

Early in my career but looking at making it a permanent home.

Slim

4/25/16 10:46am

Is this a purchase or refi?

Iman23

4/25/16 10:46am

Purchase. I only have 5% to put down as it is our first home and this plan offers no PMI.

Slim

4/25/16 10:47am

Will you be able to pay it off if needed at or before 15 years?

byubyu

4/25/16 10:36am

Will I be able to pay off the complete mortgage amount including the expected balloon payment in 15 years?

Slim

4/25/16 10:41am

And if rates go up significantly (which is likely) what's the plan?

byubyu

4/25/16 10:53am

If the new mortgage would be a 15 year then I'd hope the future rates on a 15 year mortgage aren't too

Slim

4/25/16 10:55am

That is a very bad assumption

CougarThug

4/25/16 11:13am

They wont. Source:

molodyets

4/25/16 11:14am

I did an 8-year balloon with my first house. I knew I'd likely be there less

4/25/16 10:37am

I like the peace of mind of a low long-term interest rate.

titlecoug

4/25/16 10:49am

My mortgage payment would be about $200/month more with the 30 year fixed option

Slim

4/25/16 10:53am

Which would essentially save you 300-400 per month for a while. If you can

cougaman

4/25/16 11:01am

I'm assuming the $200 in savings includes the saved PMI expense. Correct?

CougarThug

4/25/16 11:26am

if you are in Utah there are lot of first time home owner programst hat odnt

molodyets

4/25/16 11:26am

Is this your only home you will buy? If so then it is the best

deckard667

4/25/16 11:01am

Pay cash for my balloon purchases.

In Reverie

4/25/16 11:25am

$200 a month is what you're worried about? Get a set rate, dood.

4/25/16 12:48pm

I would also make sure that you are buying what you really can afford. Just because you are approved:

deckard667

4/25/16 12:55pm

Yeah. We are buying for well under what I could actually be approved for.

Slim

4/25/16 1:49pm

Yeah I ended up telling the mortgage guy we just want the 30 year fixed.

Slim

4/25/16 1:51pm

You should be able to do some sort of "piggy back" type loan to avoid PMI. Don't

cougaman

4/25/16 1:56pm

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