Home loans-80/20 loans interest only?

My husand and I are first time home buyers with no downpayment. Our middle credit scores are about 650 each. We have met with a broker who is offering us: 80/20 on a $200,000 loan. It would be interest only on the 80 portion with a 30-year fixed at 7.25 % with option to pay towards principle monthly with no... show more My husand and I are first time home buyers with no downpayment. Our middle credit scores are about 650 each. We have met with a broker who is offering us: 80/20 on a $200,000 loan. It would be interest only on the 80 portion with a 30-year fixed at 7.25 % with option to pay towards principle monthly with no penalties. 11% interest on the 20 portion with payment of principle and interest monthly. However, he then mentioned 15-year balloon payment on the 20 portion and said that we can refi at the end of the 15 if we dont pay it off. I have done alot of research but I dont get the feeling this is a good loan for us-the words "balloon" and "interest only" really scare me!
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