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Updated almost 11 years ago on . Most recent reply

Installment loan or new 30 yr mortgage
Hello BP,
I am buying a property for 20,000 and wondered what the pro's opinions are.
Should I pay 20% down and get a 30 yr loan at 4% and obviously pay all the fees involved with this or
I have another property worth 70,000 and have 50,000 in equity. The current installment loan on this property for 20,000 is 3.75%.
Should I do a new installment loan for the 20,000 (new home purchase) therefore paying no 20% down and minimizing loan fees? The kicker is the loan is a 20 yr with a 5 yr balloon. The interest rate would start at 4.25%
Any advice is greatly appreciated.