By Admin on Mar 21, 2009 in Other - Business & Finance
cabimasheat asked:
I was offer a interest rate of 6.87 for 15 years in 89000.00 with a payment base in 30 years with a balloom payment of 66000.00 in the end of the 15th year. I want to know if I can refinance in few years the second mortgage and get out of the balloom payment.
Now I am traing to consolidate a second mortgage and a line of credit, wichone I only paying interes, nothing agains the credit line
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I was offer a interest rate of 6.87 for 15 years in 89000.00 with a payment base in 30 years with a balloom payment of 66000.00 in the end of the 15th year. I want to know if I can refinance in few years the second mortgage and get out of the balloom payment.
Now I am traing to consolidate a second mortgage and a line of credit, wichone I only paying interes, nothing agains the credit line
Content
If you are going to refinance your first to payoff your second, then you need to make sure that you do not have a prepayment penalty on either loan. You can refinance your balloon second at anytime provided that you do not have a prepayment penalty stating that you will not pay the loan off or refinance within XX years (prepayments are usually 2 to 3 years depending on the state in which you reside). Prepayment penalties can be costly – usually about 6 months of interest. Balloon loans that are 30 years due in 15 years (360/180) means that the loan is amortized over 30 years but the ballance will be due in 15 years – your payments are based on a 30 year pay term. Verify whether or not you have a prepayment penalty (you can look through your mortgage documents) and you can refinance at any time provided you do not have a prepayment penalty
neobahamut2k3 | Mar 21, 2009 | Reply