Who remembers 18% and 19% interest rates? I do, do you? Balloon Loans. Interest rates are so low right now.Wednesday, April 20th, 2016
So, I’ve been looking back on my life and thinking about my homes I’ve purchased. My first place was back in 1977, in the little town of Solon, Iowa. I can’t remember the exact price of the home, I’m going to guess it to be around $37,000.00. Sounds really cheap now but that was 40 years ago. At the time we barrowed the money on a balloon loan. Does anyone remember balloon loans. It was a risk to go with a balloon loan. Usually, it consisted of after 3 years of making payments the loan would come up for review and whatever the current interest rate was is what you consumed. I think after my first 3 years when it was time to review my 8% or 9% loan rose to 18% or more. Can you image that? I know the loan amount wasn’t huge but that is a huge increase. At the time you just went with the flow paid it and after another 3 years reviewed the loan again and the interest rates had dropped back to guesstimating 11%.
Right now interest rates are extremely low and there are so many grant programs out there, it really does make it very easy and affordable to purchase a home. Lock in the rate and you don’t have to think about it again.
When are you ready to move? I would love to help you with your Real Estate needs. Please call, text or e-mail me anytime. Enjoy your night. Penny