Posted on: 23rd Feb, 2010 05:32 pm
I am considering purchasing a developed lot in a small, but nice subdivision. I intend building a retirement home on it in about 5 years. The plan is to finance it with a loan with a 5yr balloon. We have good to excellent credit. The property is in SC.
I'm not not familiar with this type of loan and trying to find out some information. First, what type of lender would you expect to do this type of lending? Would a mortgage broker be of use in a situation like this? What type of down would the lender expect? Also, I know the interest rates would be above a traditional home mortgage. Any idea how much higher?
Thanks for any help.
I'm not not familiar with this type of loan and trying to find out some information. First, what type of lender would you expect to do this type of lending? Would a mortgage broker be of use in a situation like this? What type of down would the lender expect? Also, I know the interest rates would be above a traditional home mortgage. Any idea how much higher?
Thanks for any help.
hi wilmor,
a balloon mortgage is a loan that allows you to make low monthly payments for a certain period of time, at the end of which you are required to pay off the balance in full. this type of loan is good if you want to refinance property after a certain period of time.
you can contact a mortgage broker to find a balloon mortgage at good interest rate and terms. the amount of down payment and the interest rate would depend on your credit scores and other factors. however, it could be a little difficult to get a mortgage against a lot with no home on it.
you can go for a no obligation free mortgage quote from the lenders in this community. they will assess your financial situation, your credit scores and will offer free mortgage quotes. this will help you get an idea about what sort of interest rate you can expect to get on the loan.
a balloon mortgage is a loan that allows you to make low monthly payments for a certain period of time, at the end of which you are required to pay off the balance in full. this type of loan is good if you want to refinance property after a certain period of time.
you can contact a mortgage broker to find a balloon mortgage at good interest rate and terms. the amount of down payment and the interest rate would depend on your credit scores and other factors. however, it could be a little difficult to get a mortgage against a lot with no home on it.
you can go for a no obligation free mortgage quote from the lenders in this community. they will assess your financial situation, your credit scores and will offer free mortgage quotes. this will help you get an idea about what sort of interest rate you can expect to get on the loan.
We wouldlike to obtain a building lot that is available now for 80,000. We may not actually build for three to five years. We are prepared to provide a down payment as high as 20,000
We live $350,000 home totally paid for and will sell it when we begin buidoliong on the new lot. Our credit score is quite high as we have no outstanding depbt and generate yearly income from all sources at about80-110,000
We would like advice as to the best formn of a loan with the lowest interest rate
We live $350,000 home totally paid for and will sell it when we begin buidoliong on the new lot. Our credit score is quite high as we have no outstanding depbt and generate yearly income from all sources at about80-110,000
We would like advice as to the best formn of a loan with the lowest interest rate