loans

[bobbee25]

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 ?

 

[pb4uski]

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.

 

[braumeister]

I'd go with 15 years conventional mortgage... that will probably be you lowest interest rate.

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.

 

[bobbee25]

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.

 

[Bamaman]

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.

 

[RunningBum]

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.

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.

 

[bobbee25]

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.

 

[OldShooter]

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.