Answers (18)
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Welcome Julie. ..... Best wishes, Rudi
- julie48
- Contributions:7
Thanks for your help!
- Clay Branch, "Georgia Loans"
- Contributions:8816
That is sweet, accept it ASAP.
- julie48
- Contributions:7
The new principal balance is $210,172.74. In 2018 at 4.39% payment of $899.42 and the # of payments is 204. THanks
- Clay Branch, "Georgia Loans"
- Contributions:8816
That's interesting, I get slightly different payment amounts using the rates of 2%, 3%, 4%, 4.39%.
I get;
776.84 for 5 years
772.71 - 12 months
856.73 - 12 months
881.75 for ??
What does it show after 12 payments at $889.42, does it show 1 payment for $119,340.80? If not, how many payments does it show for the $899.42 payment? Either way this will save you money and give you time to get your credit back up so if it does have a balloon payment in the 8th year, hopefully you will be in the position to refinance. If not, you still have the loan and house for 7 more years at a payment that is much lower than the current payment while building equity.
I get;
776.84 for 5 years
772.71 - 12 months
856.73 - 12 months
881.75 for ??
What does it show after 12 payments at $889.42, does it show 1 payment for $119,340.80? If not, how many payments does it show for the $899.42 payment? Either way this will save you money and give you time to get your credit back up so if it does have a balloon payment in the 8th year, hopefully you will be in the position to refinance. If not, you still have the loan and house for 7 more years at a payment that is much lower than the current payment while building equity.
- julie48
- Contributions:7
My amorization schedule is
Year Rate Interest rate change date Payment # of paymentss
2011 2% 9/1/2011 $647.13 60
2016 3% 9/1/2016 $749.12 12
2017 4% 9/1/2017 $856.54 12
2018 4.39% 9/1/2018 $899.42 204
plus taxes and insurance.
I just want to thank everyone for your help!! I don't think I would have taken the deal without you and I appreciate it very much and will recommend this site everyone I know.
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
Thanks Sunny.
Julie,
Although there are probably a lot of firms named American Home Mortgage, I think this one is your mortgage loan servicer. This step mortgage is a loan modification because they are only a servicer. They don't sell mortgage loans.
I am curious what the $119,940.80 is for in 2035. That's too high for a 25 to 30 year amortization balance. Was this explained to you?
Happy funding, Rudi
Julie,
Although there are probably a lot of firms named American Home Mortgage, I think this one is your mortgage loan servicer. This step mortgage is a loan modification because they are only a servicer. They don't sell mortgage loans.
I am curious what the $119,940.80 is for in 2035. That's too high for a 25 to 30 year amortization balance. Was this explained to you?
Happy funding, Rudi
- sunnyview
- Contributions:26838
I have to say that you have a great squad of professionals here on this thread. Hamp, Clay and Rudi would not steer you wrong and in your position I would trust their advice in a heartbest. If you post more specifics, they will have your answer.
- Clay Branch, "Georgia Loans"
- Contributions:8816
This sounds like a modification, I thought we were talking about a purchase. If it was a balloon it would not be a 7/1, it would be called a 7 Year Balloon. Where are you seeing the 2035 date? Do you have an amortization schedule? Since it shows a fixed rate for the entire term, I would jump on that in a second if it is accurate, even if it has a balloon feature and a demand amount of $119,340 in 2035. The total terms of this are excellent if it is what we think it is.
The 4.39% will stay until 2035 and then I will have to pay the $119,340.80.
If you do not have an amortization schedule, get one and post what it says.
The 4.39% will stay until 2035 and then I will have to pay the $119,340.80.
If you do not have an amortization schedule, get one and post what it says.
- Hamp Yonce, "Zilluminati"
- Contributions:3483
That is a different discussion. They can't make you pay the balloon in seven years if it is not due for fifteen. I don't know if you can refi before 2035, nobody knows. I think you're worried about a non-issue. If I were you, and you indeed already have a 7/1 ARM @ 6.75%, I would seriously consider this offer. Again, I hope others who care to analyze the scenario chime in. I could be way wrong. Another thing is that the offer you have on the table indicates to me that your credit may not be as terrible as you think, or either you have a very conscientious and cooperative lender.
- julie48
- Contributions:7
I have my loan through America Home mortgage. I think it is a 7/1. I'm afraid if I sign it and then in 7 years they ask my for the $119,340. which I won't have. The Maturity date is 9/1/2035. Can I refinance before 2035 and not have to pay the $119,340. I have bad credit. I did a loan modification last year and they lowered my rate from a 9. something to 6.75%. I don't qualify for it again this year, but I do qualify for this one. Please help!!! What should I do???? I have 3 kids and I don't want to lose my house. Should I just stay with what I have $1780 per month payment or the new amount of $1006.?????
- Hamp Yonce, "Zilluminati"
- Contributions:3483
I think it looks like a fairly reasonable way to go if you don't qualify for a conforming or government fixed rate loan. There are many other factors to consider. Like why are you buying, how much are you paying,how stable is your job situation, your debt ratios, how long do you plan to live there, what are your credit issues,etc... But as the oddball product of a step rate balloon goes, this one looks really good. I would equate the risk to you as about equal to doing a 3/1 or 5/1 Conforming ARM. I hope Clay and Rudy chime in and point out my ignorance, but they may somewhat agree with me.
What sort of entity is offering you this product?
What sort of entity is offering you this product?
- julie48
- Contributions:7
The balloon is due on the maturity in 2035. What do you think?
- sunnyview
- Contributions:26838
I would not do a balloon. I simply saw too many people lose their houses with them. Please do what you can to fix your credit first before you buy. Conventional rates are low and a balloon is a ticking financial timebomb especially if you cannot fix your credit or refi before the balloon is due.
- Hamp Yonce, "Zilluminati"
- Contributions:3483
It doesn't look too crazy to me, but I'm about goofy.
- julie48
- Contributions:7
It is a freeze-step interest rate with balloon payment.
Loan is $210,172.74
2011-2%
2016-3%
2017-4%
2018-4.39%
The 4.39% will stay until 2035 and then I will have to pay the $119,340.80.
I'm afraid that at the end of the 7 years they will want me to pay that amount. I have terrible credit. Should I take it?
Thanks for everyone's help!
Loan is $210,172.74
2011-2%
2016-3%
2017-4%
2018-4.39%
The 4.39% will stay until 2035 and then I will have to pay the $119,340.80.
I'm afraid that at the end of the 7 years they will want me to pay that amount. I have terrible credit. Should I take it?
Thanks for everyone's help!
- Clay Branch, "Georgia Loans"
- Contributions:8816
I agree with Rudi. Just for kicks, what are the "steps"?
- Rudi Hofmann, "LUXURY HOME LOANS CA"
- Contributions:7435
With today's rates there is no need to even consider this as an option.
Happy funding, Rudi
Happy funding, Rudi
Did you trust a step rate balloon loan?
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