We are looking to move to another home out of state. We are going to finance the 2nd home while we put our primary home on the market.

Asked by Donna, 38138 Wed Feb 23, 2011

Once sold, will use the proceeds of that sale to pay off the out of state home. What is the best mortage to take to pay the lowest amount in interest (since we will only be borrowing the money short term). A 5 year balloon or a longer term fixed rate loan? We would prefer to pay interest only while we are borrowing the money and pay the principal back early.

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Corey Grushin’s answer
Corey Grushin, Agent, East Brunswick, NJ
Mon Mar 7, 2011
Donna consider an interest onloy 3/1 ARM with no pre-pay penalty. A balloon is not necessary. The ARM period you choose shoud be dependent on the time frame you believe it will take you to sell your current home. A home Equity loan would be even better if you could qualify. Good luck.
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Patty Everitt, Agent, Collierville, TN
Fri Mar 4, 2011
Please check with a lender for this one, there are so many different programs out there that lenders are in class as much as Realtors ! The 5 year balloon has a great interest rate, but who is to know if you will walk away with enough profit to pay it off ! Take care and good luck ! Knowledge is everything !
Web Reference:  http://www.PattyEveritt.com
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Kim Novarese, Agent, Germantown, MD
Wed Mar 2, 2011
Dear Donna,
As a realtor and always a good source in helping my clients, family and friends find some answers.
You might check first with your personel bank's loan department . I always sugguest checking
several loan officer's before committing. I would be gald to give you several sources that
you could contact for some information . The spring time is a great time to list your home-When you
are ready - I have a great marketing Plan .
Give me a call ,if I can help.
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