I’m feeling anxious about a decision I’ve made regarding a land deal. I have my own mobile home, and I’m about to close on a loan with a balloon payment. The loan officer explained that the balloon payment is there to allow for refinancing at market rates, as opposed to a fixed rate mortgage which would lock in the initial rate. They assured me that I wouldn’t have to come up with $20,000 in six years; I could simply refinance. However, one line in the agreement seems to contradict this reassurance. I’ve already paid for the appraisal and signed the documents, and the deal is set to close soon. This is my first experience with a mortgage, and I’m 57 years old. The approval process involved submitting paycheck stubs, credit references from utilities, and landlord recommendation letters because my credit report initially showed no credit history. The loan is with Texas Bank and Trust. I’m wondering if my worries are exaggerated and if this situation is common. If there is a risk of having to pay $20,000 unexpectedly, are there any options to back out after paying for the appraisal and signing the documents?
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