Balloon Payment vs. Regular Financing

4 Replies


I am planning to buy a condo and I have two options to finance it: through a lender with 35% down payment for 30 years and a lot in closing costs or seller financing with the same interest rate (6%), but with a balloon payment in 5 years. 

Which one would be a better option?

Thank you,


@Mihaela Moraru Do you have the money for the financing? If not I'd recommend checking with more lenders, actually I'd recommend that anyway.

If you can't finance traditionally right now, but will be able to in the next couple of years, the seller finance can be a great option.

Originally posted by @Mihaela Moraru :

Thank you so much Larry for your response. 

How is the weather in Rochester? I lived there for 9 years. I had a bunch of properties there, but I sold them when I moved. 

 It's nice now!  It went from snow on May 1 to summer over night.