5 yr balloon matured
I'm trying to figure out what is going on and looking to see if anyone experienced this.
I took out a mortgage in 2014 against a rental condo. It was a 5 yr, 20 year amortization. It came due in Feb. I reached out to the bank a few weeks before maturity to see if they will be extending it, or if I need to refinance with another institution. They agreed that they will be extending.
Today I got the paper work and they are extending the maturity 3 months and not another 5 years. Not sure what is going on, I am wondering why they would do this? The 2 things that come to mind are they were waiting to see if the Fed would be raising rates or they are waiting on my 2018 tax returns (which I will be filing for and extension). As of yet, No new appraisal was ordered or mentioned. LTV would be around 40%
I will be reaching out to my banker tomorrow. I am scratching my head trying to figure out what they are trying to accomplish.
The Fed did not raise rates and it looks like they will not be for the rest of the year. Perhaps they are hoping that rates go down and they will be able to keep my rate the same in a market where rates are lower, increasing the value of the mortgage.
Has this happened to anyone?
Fyi the mortgage is only $60,000 @ 6% not anything crazy and worth shopping around for. I would then have to go through the entire lending process and reamortize my loan for 25 years, rate wouldn't be much lower and possibly higher considering it is a small balance loan and originated in 2014