15/30 balloon mortage?

[Anthony Franco]

I'm looking into buying my first rental property, it will be a single family home. I talked with a local bank and their only option is a 15/30 balloon mortgage. It’s a 30 year amortization, but has a balloon payment at the end of 15 years.

Seeing as I was planning to keep the property for only around 10 years, I don't see any drawback with this type of loan. But it's not the usual loan I've always read heard (30-year fixed).

So I was curious to know other's opinions. Anything I should watch out for regarding this type of loan?

[Alexandre Marques dos Santos]

@Anthony Franco

Not sure why you cant find a 30 yrs fixed. Maybe look for other banks? Unless this deal 15/30 has a better rate than 30 years fixed, makes no sense to you.

Technically the rate should be closer to the 15 yrs fixed.

Does not matter for you the ballon as you think it will sell around 10 yrs... but again, the bank must give a better rate for you than a 30 yrs fixed...