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    carol44's Avatar
    carol44 Posts: 1, Reputation: 1
    New Member
    		  
    #1

    May 8, 2012, 07:09 AM
    Balloon mortgage is it a good idea
    Should I hold the mortgage on my house balloon at 4% on 350,000 mortgage for 5 years with only a 25,000 down payment]
    ballengerb1's Avatar
    ballengerb1 Posts: 27,378, Reputation: 2280
    Home Repair & Remodeling Expert
    		  
    #2

    May 8, 2012, 07:16 AM
    Ballons are a bet, current rates are better than 4% and who knows what the market will be when the ballon busts. This is only a good idea if you intend to sell before the ballon pops.
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
    Uber Member
    		  
    #3

    May 8, 2012, 08:50 AM
    Quote Originally Posted by carol44 View Post
    should I hold the mortgage on my house balloon at 4% on 350,000 mortgage for 5 years with only a 25,000 down payment]
    When did you take out the mortgage?
    What is the rate of the mortgage based on?
    What is your credit score with the 3 credit reporting agencies?

    The downpayment really has nothing to do with whether you should refinance now or not.
    mmresd's Avatar
    mmresd Posts: 2,002, Reputation: 553
    Ultra Member
    		  
    #4

    Jun 20, 2012, 06:11 PM
    If you are lucky and your house doesn't fall underwater, and you don't plan on living in that house till the balloon payment date comes, then it might not be such a bad idea. But if you are looking at the place you plan on retire, or you are unsure whether the area will increase in price instead of decreasing, I would be very against getting a balloon loan.
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