Balloon Mortgage Information For Real Estate Buyers
Although not the best option for some borrowers, a Balloon Mortgage can be great for many other home buyers. The length of the term can typically be expected to run from 5 – 7 years but the payment amount is based on a term of 30 years.
Balloon Mortgages will often have a lower interest rate and are also considered an easier option to qualify for than a 30 Year Fixed Mortgage.
Borrowers should be aware of the risk associated… At the end of the loan term, the borrower will need to pay off any outstanding balance which is typically the highest payment over the life of the loan.