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10-14-2018, 01:10 PM
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#1
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Recycles dryer sheets
Join Date: Apr 2004
Posts: 137
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loans
If you want to buy a house for 320K, pay 280K cash.
What would be the best type of loan for the 40K, 15 years or so.
Any where you just pay the interest and then the balance at the end ?
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10-14-2018, 02:08 PM
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#2
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Nov 2010
Location: Sarasota, FL & Vermont
Posts: 36,374
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I'd go with 15 years conventional mortgage... that will probably be you lowest interest rate.
What is "best" depends on what your objective is.
__________________
If something cannot endure laughter.... it cannot endure.
Patience is the art of concealing your impatience.
Slow and steady wins the race.
Retired Jan 2012 at age 56
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10-14-2018, 03:04 PM
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#3
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Moderator
Join Date: Feb 2010
Location: Flyover country
Posts: 25,362
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 Quote:
Originally Posted by pb4uski
I'd go with 15 years conventional mortgage... that will probably be you lowest interest rate.
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I would agree. The other type you mention is called a balloon mortgage and is much less common, as well as generally having a higher interest rate.
__________________
I thought growing old would take longer.
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10-14-2018, 04:05 PM
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#4
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Recycles dryer sheets
Join Date: Apr 2004
Posts: 137
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Would a home equity type loan be better.
Want to keep the monthly cost down.
Could always pay any balance when the new house is sold.
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10-14-2018, 04:10 PM
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#5
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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Trouble is finding a mortgage company wanting to do the paperwork for such a small loan. I would probably use my credit union for such a transaction, especially if you think you'll be doubling up on payments, etc.
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10-14-2018, 04:11 PM
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#6
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Jun 2007
Posts: 13,228
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Quote:
Originally Posted by braumeister
I would agree. The other type you mention is called a balloon mortgage and is much less common, as well as generally having a higher interest rate.
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Really? Last time I got a mortgage, in 2003, I got a 5 year fixed balloon because it had a lower rate than a 15 yr fixed. And I had plans to sell in 5 years.
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10-14-2018, 04:57 PM
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#7
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Recycles dryer sheets
Join Date: Apr 2004
Posts: 137
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My thought is that I will in the after life in 10 to 15 years, so keep the payments down and have it paid off with the sale of the house.
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10-14-2018, 05:34 PM
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#8
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Give me a museum and I'll fill it. (Picasso)
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Join Date: Mar 2017
Location: City
Posts: 10,351
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Why not just buy a $280K house? Is 14% more house really necessary? Your interest payments are unlikely to be deductible unless you have other deductions that help put you over the new standard deduction, so you will be paying full freight.
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