Hey all -
I have a 2nd mortgage for 40,000 dollars from the bad old days of 2005. It is only 200 dollars a month, but it is a balloon mortgage that comes due in June of 2015. As I understand it, this means that the entire 40k will be due in 2015. I'm trying to figure out my options but I'm not very savvy with this stuff.
Options:
- pay it off - I have enough savings and extra 'just for fun' stocks that I could pay this mortgage off and be done with it. Since I still owe a bit more than my house is worth at this time, paying off the mortgage is just throwing liquidity down a black hole. Not the best option.
- Let June 2015 come and try to negotiate it to become a non-balloon mortgage. This option would be great for me but I don't know if the company will do it. They bought my mortgage from elsewhere and seem to be a 'collection only' type of company. Afraid to let it go until 2015 without knowing what will happen, feels a bit like playing chicken.
- Try to get a loan from another source and use it to pay this off. Since it wouldn't be a mortgage loan, no more tax deduction, and likely higher than the 6% of this loan.
- something else??
Things that are not options:
- a regular refinance - no equity in the house for a second mortgage holder so no it's a nonstarter
- leaving or selling the house - we can afford it, we like it, we're not going to move.
Calling on all mustachians to help me through this complicated (for me) scenario.
-Eric