Balloon Mortgages Are Alive And Well
During the crazy years in the mortgage business, one fairly popular product was the balloon mortgage. A recent article in the Washington Post discusses how lenders are still offering this rather unconventional loan program. Simply stated, a balloon mortgage is a loan that has payments that are based as if the loan was being paid off over 30 years. The catch though is that on the 5th, 10th or 15th anniversary (whatever the term of the balloon) the entire loan must be paid off. So you you either have to pay the balance off, refinance or sell your home when the balloon payment is due.
So why do this? In a word, rates.The interest rate on a balloon mortgage are usually considerably less than on a conventional full term loan. And most people are well aware that they they never actually keep a 30 year loan for 30 years anyway. So why not? Really, there is no reason no to consider a balloon note, especially if you have always had a good credit history. It may make sense and save you considerable money over the life of the loan.
Click here to check out Lending Tree’s great rates on all mortgages including balloons
Related posts:
- Understanding Adjustable Rate Mortgages Part I Understand
- Understanding Adjustable Rate Mortgages Part II In Part II
- Fixed Rate Or Adjustable Rate, Which Is Best For You When buyin
- More Homeowners are Late on Their Mortgages Despite si
- Confused About Mortgages? You’re Not Alone Another go
Related posts brought to you by Yet Another Related Posts Plugin.
Comments
Leave a Reply
