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coolkuddi02 · Joined: 13 Feb 2008 Posts: 1 1.40 Dollars($)

I lost around 35K selling my home in OHIO 2 years back and I had to come up with this money at the closing day. I took some from my credit card, loan, 401K etc and I am trying very hard to pay off.

I have around 20K to pay in debt. I got an estimate from bank for consolidating my first, second and cash out with 30/15 BALOON mortgage. I am not sure what this 30/15 is.

Right now I have fixed mortgage. Please advice.

jameshogg · Posted: Wed Feb 13, 2008 9:51 pm Post subject: RE: 30/15 mortgage

Hi Coolkuddi,

Welcome to forums.

The 30/15 year baloon mortgage allows you to make payments at regular intervals based on an amortization schedule of 30 year fixed rate loan. So, here, your monthly payments will be equal to what you need to pay in a 30 year mortgage. And, this would continue for 15 years at the end of which you need to pay off the outstanding balance in a lump sum amount or balloon payment.

Please refer to a page on balloon mortgage to get a fair idea of what it is.

Thanks

ckalvesmaki · Posted: Thu Feb 14, 2008 6:55 am Post subject:

What is the rate? What are your credit scores? Are you able to prove income? There are only a few lenders offering a 30/15 in first position and chances are a 30/30 is about the same rate.....depending on loan amount FHA may be an option.......

chrisburns · Posted: Thu Feb 14, 2008 3:01 pm Post subject:

Agreed. Very few situation where a 30/15 is going to be the best option for you.

FHA is the way to go especially if your at a higher LTV. FHA mortgage insurance is unbeatable.

jeffselan · Posted: Thu Feb 14, 2008 4:07 pm Post subject: Not a great loan

Not a great loan unless you are in it for the short term. As previously stated, rates likley are as favorable on a fixed rate. Mortgage insurance is more favorable on FHA, if you are below your FHA ceiling. ( I didn't read that if oyu already stated.

Since I just repeated everything the other lenders stated ( sorry guys ).

Talk to a different bank. Is this your current lender offering you the ballon? If not, yoour best bet might just be to talk to your current lender.

Find a deal that works for you and make sure you make a good estimate of home value. I would hate to see you waste the appraisal cost in a declining market.

lisascherzer · Joined: 04 Jan 2008 Posts: 755 1.12 Dollars($)

Sounds like you might be getting into a non conforming loan with a higher rate of interest. The 30/15 is very typical with this type of loan. There are many conforming loans with expanded criteria that allow those with less than perfect credit to qualify at lower interest rates. I would do a little more shopping.

enriko · Joined: 05 Mar 2008 Posts: 67 0.07 Dollars($)

what are your credit scores?

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