Mortgage Advice Please (credit score, equity loan, house)

[yellowsnow]

I owe less than 100K on a 400K property and credit score over 800. I know I can get a mortgage easily but what kind should I get?

I got a 5 year mortgage in 02 because I was selling the house in 06. Well, it hasn't sold so I get to buy a new mortgage. I only need the money till the house sells so what should I do?

I know there are lots of options out there I have probably never heard of.

Thanks!

[TimtheGuy]

Can you clarify your 5 year mortgage? 5/1 ARM or a 5 year balloon??? I would think whatever mortgage you are in now that you could re-new it or roll it into another 5 years. What is the rate on this loan?

Your main concern should be low or no costs. If you have to get a new mortgage I would get an equity loan with low to no costs and no pre-pay penalty.

[yellowsnow]

Balloon at 5% fixed, no ARM! Thanks for your suggestion.

[TimtheGuy]

Check your mortgage docs (legal sized folder from your closing) and see if your Balloon note has a "re-set" option. If it does contact the lender and find out if this loan can be re-set to a new balloon at current rates. While your rate of 5% is history you should be able to get another 5 year balloon at around 6% or a hair higher.

You may find that your lender no longer offers balloon products if it is a secondary market loan. Many of the lenders discontinued these as there was not enough demand once the short term and long term rates got mashed together.

With your credit scores and equity your current lender should be happy to offer you some kind of no cost "re-set". Give them a call.

[yellowsnow]

Thank you! Appreciate the advice!