My real eastate agent suggested a balloon loan for the purchase of a new home. We really want this one house, but the only way we will be to afford it (even with prices coming down so much) is by using a balloon loan, or possibly neg-am loan (do those even exist anymore?). Does anyone have any type of experience with these types of loans?
Balloon loans require
Balloon loans require repayment of the balance after 3, 5 or 7 years. They are good if you are going to sell within that period (and can sell for more than you bought, which is why I would advise against using them for a purchase right now). I tend to favor interest-only for investors. I don;t know much about neg-am, I doubt you could get that anymore anyways as well.