Feel free to call me, Eileen Kedersha One Sotheby's International Realty 954-561-4100. http://www.SFloridaLuxuryHomes.com
Hope this helps,
Beachfront Realty, Inc.
However, it depends upon what you have in mind for your financial future. If you're going to pay it off in cash and have no mortgage, then it makes sense to pay it early in order to avoid the additional interest payments.
However, if you're going to refinance, ask your mortgage broker - or your accountant - how many years you have to remain in the house for you to break even on the refinancing costs.
Also, if you're paying off the balloon mortgage and you don't have to refinance, ask your accountant to discuss with you the virtues of carrying a mortgage versus owning the home free and clear.
Marc Jablon, the Jablon Team
Re/Max Complete Solutions
Like the others have said below, there are many factors to determine the best answer to your question. It sounds like you have the money now, to payoff the balloon mortgage. Are you going to have the money when the balloon mortgage comes due? If your credit and income are good, you should be able to get the money back out of the house if you needed it for something else.
If it's a condo it might be harder to get cash out of your property then a single family home.
I'm sure the balloon interest rate is higher then any interest your making leaving it the bank.
Everyone's situation is different and everyone risk level is different. Just get several opinions and see what answers you get.
E-Realty Services Corp
Do you plan on staying in the home for a long time to out weigh the costs of the refinance?
Have a great day;
CEO & SR Credit & Mortgage Consultant of
Ex-Mortgage Broker of more than 10 years