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Unconstitutional Patriot
Join Date: Apr 2000
Location: volunteer state
Posts: 5,620
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It's a calculated risk. Is a $900 monthly savings worth the risk?
Normally, I would suggest the fixed rate, but the short ammortization period gives you quicker paydown. When you refinance the balloon amount in three years, you'll be carrying a lower principal amount.
A third option is run variable rate and invest the $900 savings in the company OR if you have no creative bones, simply throw the $900 at the loan principal. Don't use the savings for stupid *****.
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