A balloon mortgage has an interest rate that is fixed for an initial amount of time. At the end of the term, the remaining principal balance is due. At this time, the borrower has a choice to either refinance or pay off the remaining balance.
There are no penalties to paying off a balloon mortgage loan before it is due. Borrowers may refinance at any time during the life of the loan.
Balloon loans typically have either 5 or 7-year terms. For example, a 7-year balloon mortgage with an interest rate of 7.5% would feature this interest rate for the entire term. After 7 years, the remaining loan balance would become due.
We've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 135622
www.nmlsconsumeraccess.org
James Wick, MLO
C2 Financial
2320 Paseo Del Prado, B204
Las Vegas, NV 89102
Phone: 702-790-1800
jwick@c2financial.com
NMLS: 255006
Powered By LenderHomePage.com