Installment loan or new 30 yr mortgage

[Nate Downs]

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.