Posted on: 03rd Apr, 2009 10:26 am
Small town local bank offers only 5 year balloon notes on fixed rates, understandably due to the possibility of increased prime rates and their dependancy on the treasury for financing. Balloon notes are scary to me, now called "renegotiation", as in the long term, they are as questionable as ARM's and the local bank needs to protect their own interest to survive. We are low income people with excellent credit scores who have lived within our means, and wish to make improvements on our home. With excellent credit scores, no chance of foreclosure, we wish to make a loan of under $50,000 with a fixed rate for the term of the loan. Our local bank will do this, replete with closing costs, and they will be forced to sell our note at a "discount" to financial institutions with more capital at their disposal. What is your opinion as to how we should proceed?
my recommendation, aphrodite, is that you shop around a little bit more. though many lenders don't like small loans, and maybe not offer them, there are certainly lenders who don't shy away from them. you'll find rates a bit more expensive than if you were borrowing a substantial amount, but that's not necessarily a lot of money considering what you propose.
by all means, look around some more.
by all means, look around some more.
Thank you for your honesty. Grandfather had a farm in Bloomfield, CT when there were no subdivisions. I know that financial institutions have been given the right to practice usuary, as banks separated their corporate holdings for unsecured loans by holding companies. And yet, still reaped the profits of their subdivided credit card companies, backed by the federal government who supported AIG, the insurance company backing bank loans. SEC has either been out to lunch for eight years or associates have found it in thier perceived benefit to ignore emplaced laws, including anti-trust, that forbid consolidation of companies vital to national security.
Those of us who pay our bills, and on time, go without if we can't afford, regardless of credit worthiness, are taking second place to those who borrowed more than they knew they could pay back. The American Dream.
Those of us who pay our bills, and on time, go without if we can't afford, regardless of credit worthiness, are taking second place to those who borrowed more than they knew they could pay back. The American Dream.
joan are you and aphrodite one and the same person? i can't tell.
i live on land that was once a dairy farm, according to my across-the-street neighbor.
i live on land that was once a dairy farm, according to my across-the-street neighbor.
Last I knew, my grandfather's old farm in Bloomfield was last owned by my aunt. When I was a child, the whole area was undeveloped land with a small farm about a mile away. The three year old address I have is on Wintonbury Avenue if that helps regarding the proximity of your present home to my mention. Aphrodite is my nickname.
I will take your advice and continue to seek the best deal I can get. My local rural bank can only extend five-year (balloon notes), or can "farm out" a longer term fixed rate note to another larger institution. I don't like the idea of re-negotiation every five years, as who can predict what will happen to regulations and/or the prime rate in those time periods and it seems that it would be as risky as an ARM.
Appreciate your sound and sensible suggestion. Happy Easter!
I will take your advice and continue to seek the best deal I can get. My local rural bank can only extend five-year (balloon notes), or can "farm out" a longer term fixed rate note to another larger institution. I don't like the idea of re-negotiation every five years, as who can predict what will happen to regulations and/or the prime rate in those time periods and it seems that it would be as risky as an ARM.
Appreciate your sound and sensible suggestion. Happy Easter!
i'm on a street right off wintonbury avenue - the house across the street was built in 1798, so i guess there was plenty of farmland around, but there was a minimal amount of development, at least.
depending on the terms of the fixed rate note they would "farm out" it may be worth your while to take them up on it. as i said, smaller loans are going to be a bit expensive - it's primarily because the work involved is just as great as on a $2 million deal (for example).
Happy Resurrection Day to you, too.
depending on the terms of the fixed rate note they would "farm out" it may be worth your while to take them up on it. as i said, smaller loans are going to be a bit expensive - it's primarily because the work involved is just as great as on a $2 million deal (for example).
Happy Resurrection Day to you, too.