Which special factors should be considered in deciding whether to pay off a balloon mortgage early?

Asked by Katie Tan, Fort Lauderdale, FL Mon May 6, 2013

Help the community by answering this question:

+ web reference
Web reference:


Eileen Keder…, Agent, Fort Lauderdale, FL
Mon May 6, 2013
Great question, however to answer the question a great deal more information must be discussed regarding your personal circumstances, goals and plans. Interest rates are at all time lows, most economists forecast that rates will rise which may benefit you to stay with a low interest rate loan in lieu of pay off the loan. May I suggest that you consult with your financial advisors. If you think it would be helpful and since you are in Fort Lauderdale, may I suggest and offer you the opportunity to meet with my husband and I, perhaps we can help you by discussing with you the pros and cons of both sides of your question. We have been helping homeowners with this question for over 28 years.

Feel free to call me, Eileen Kedersha One Sotheby's International Realty 954-561-4100. http://www.SFloridaLuxuryHomes.com
0 votes
Irina Karan, Agent, Aventura, FL
Mon Dec 23, 2013
Financial comfort, interest rate deductions in your tax returns, fine print in the note signed, employment situation and if you could put the "payoff funds" to better use with a better return on your investment.

Hope this helps,

Irina Karan
Beachfront Realty, Inc.
0 votes
marc jablon, Agent, Boca Raton, FL
Fri Aug 16, 2013
If you're at a high interest rate now, it may make sense to pay it off and refinance at the current lower rates.

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
0 votes
AJ Elias, Agent, Coral Springs, FL
Mon May 6, 2013
Hello Katie,

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.


A.j. Elias
E-Realty Services Corp
0 votes
Christina Ha…, Other Pro, Morristown, TN
Mon May 6, 2013

Do you plan on staying in the home for a long time to out weigh the costs of the refinance?

Have a great day;

Christina Solorzano;
CEO & SR Credit & Mortgage Consultant of
Everlasting Credit
Ex-Mortgage Broker of more than 10 years
0 votes
Jim Simms, Mortgage Broker Or Lender, Louisville, KY
Mon May 6, 2013
How long you intend to keep the house or mortgage after the trigger date.

Jim Simms
NMLS # 6395
Financing Kentucky One Home at a Time
Web Reference:  http://jamessimms.com/
0 votes
Search Advice
Ask our community a question

Email me when…

Learn more