balloon loan programs

[abugiacomo]

does anyone know of any banks/credit unions that offer balloon loan options? (similar to bmw select)...the only one i've found so far is penfed...

[kitw]

Penfed is the only one I've used... why wouldn't you want to use them? under 3% is an amazing rate!

[mjf6175]

Yep. their rate is lower than BMW Select, last I checked it was 2.74%. I will be using PenFed when my E90 comes in.

[H2]

I got my balloon loan through PenFed also. Very easy process. Didn't need to talk to anyone or provide any documentation even though I was a new customer. I just applied through their website. Got a balloon loan because I was house hunting (moving from an apartment) at the time.

[osteome]

Originally Posted by H2

Got a balloon loan because I was house hunting (moving from an apartment) at the time.

Buying a new house and a M3 at the same time? Was the balloon note to preserve a down payment for the house?

[H2]

Originally Posted by osteome

Buying a new house and a M3 at the same time? Was the balloon note to preserve a down payment for the house?

Yes. But I ended up getting 100% financing, no PMI, no second mortgage, essentially no settlement costs ($62) through a PenFed VA loan, so I didn't need the money for a downpayment.

[abugiacomo]

yeah the rate is great, and it sounds like it's a pretty painless process, but their residual is slightly lower than bmw select (~31.8% vs. 33%) so that kinda balances out the rate advantage...

in any case, i'm def leaning towards penfed, i was just curious to know if there are any other balloon options out there (i've checked with a bunch of banks and navy federal cu and haven't found any)...

[Conant]

Out of curiosity, where did you get the BMW select rate of 33%. From my research I was under the impression that the current select rate for 60months, at least for the E90, is 37%. Can anyone confirm what the actual rate is?

Originally Posted by abugiacomo

yeah the rate is great, and it sounds like it's a pretty painless process, but their residual is slightly lower than bmw select (~31.8% vs. 33%) so that kinda balances out the rate advantage...

in any case, i'm def leaning towards penfed, i was just curious to know if there are any other balloon options out there (i've checked with a bunch of banks and navy federal cu and haven't found any)...

[abugiacomo]

Originally Posted by Conant

Out of curiosity, where did you get the BMW select rate of 33%. From my research I was under the impression that the current select rate for 60months, at least for the E90, is 37%. Can anyone confirm what the actual rate is?

yeah, i saw 37% in an old post on this forum as well but the current rate is def 33% (for 60 months on an e90)...i confirmed this with ryan amico and several of my local dealers...

[ssabripo]

Originally Posted by Conant

Out of curiosity, where did you get the BMW select rate of 33%. From my research I was under the impression that the current select rate for 60months, at least for the E90, is 37%. Can anyone confirm what the actual rate is?

it is as follows:

54mo @ 34% balloon, Good credit
54mo @ 37% balloon, Elite credit
60mo @ 30% balloon, Good credit
60mo @ 33% balloon, Elite credit


the 54mo option gives you a higher residual and higher monthlies.