0
The term 'balloon mortgage' refers to a type of loan where one pays off the majority of the capital at the end of the term. You pay the interest in the meantime.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
What mortgage type typically offers low rates for an initial period of time after which the entire balance is due?
balloon mortgage
Balloon payment you have a balloon mortgage payment and you lost your job how can you get help?
I have a balloon mortgage payment and i lost my job how can i get help
Is a balloon mortgage the same as a mortgage?
No. A balloon mortgage is a relatively short term mortgage with a huge payment due at the end of the term. A mortgage is generally for a longer term with uniform payments for the life of the mortgage unless it is an adjustable rate mortgage. In that case the interest rate increases after the first couple of years and the payments go up.
Which of the following financing options will take the longest amount of time to pay off the mortgageA.Balloon mortgage with balloon payment paid in fullB.Balloon mortgage with balloon payment refinanced at lower rateC.30 year fixed mortgage D.7/1 ARM?
B. balloon mort with balloon payment refinanced at lower rate
What is simple mortgage?
A mortgage is simple if it lacks complexities such as adjustable rates, balloon payment at end, mortgage insurance, reverse mortgage, second mortgage, etc. Fixed payments over fixed time-frame.
What mortgage type typically offers low rates for an initial period of time after which the entire balance is due?
balloon mortgage
Balloon payment you have a balloon mortgage payment and you lost your job how can you get help?
I have a balloon mortgage payment and i lost my job how can i get help
What is meant by balloon mortgage in Anchorage, AK?
Regardless of location a balloon mortgage is when you have a large final payment at the end of the loan period.
In what situation would you need to know about a loan calculator balloon?
If you have a balloon mortgage, you would need to know about a loan calculator balloon. A balloon mortgage is a mortgage in which monthly payments are due for a period of time and then the remainder is due all at once as a balloon payment. These types of mortgages typically offer reduced interest rates due to their terms.
It maybe required when a mortgage matures?
A balloon payment may be required when you mortgage matures.
Is a balloon mortgage the same as a mortgage?
No. A balloon mortgage is a relatively short term mortgage with a huge payment due at the end of the term. A mortgage is generally for a longer term with uniform payments for the life of the mortgage unless it is an adjustable rate mortgage. In that case the interest rate increases after the first couple of years and the payments go up.
Which of the following financing options will take the longest amount of time to pay off the mortgageA.Balloon mortgage with balloon payment paid in fullB.Balloon mortgage with balloon payment refinanced at lower rateC.30 year fixed mortgage D.7/1 ARM?
B. balloon mort with balloon payment refinanced at lower rate
What is simple mortgage?
A mortgage is simple if it lacks complexities such as adjustable rates, balloon payment at end, mortgage insurance, reverse mortgage, second mortgage, etc. Fixed payments over fixed time-frame.
Can you explain what a balloon payment calculator is?
A Balloon Payment is a large payment due at the end of a mortgage or loan period. Therefore, a Balloon Payment Calculator will help you to predict what you will owe on your Balloon Payment.
What is a balloon mortgage?
escalates with the variable rate? fixed rate unchangeable ocala,fl
What is a balloon payment?
A balloon payment is a large, lump sum payment made either at specific intervals, or more commonly, at the end of a long-term balloon loan
How to Prepare for Getting a Mortgage with a Balloon Payment?
There are many different types of mortgages available and it can be very confusing to choose the right kind. One of kind mortgage that is almost never a good idea is a mortgage that has a balloon payment. Here are some things you should know before deciding to finance your home with a mortgage that has a balloon payment at the end.First of all, you should understand that a mortgage containing a balloon payment is never intended to be permanent. The number of years you can pay on the loan before you need to refinance varies, but with this type of mortgage, you always have to refinance. If you do not refinance your mortgage before the balloon payment comes due, you could lose your home to foreclosure.There are two big reasons why getting a mortgage that has a balloon payment is a bad idea, and both reasons come down to one common denominator: it is impossible for anyone to predict the future. When you use a mortgage with a balloon to finance your home, you are counting on being able to refinance the loan at some point in the future, and there is no way you can know for sure that you will be able to do so.One thing you are counting on when you enter into a mortgage with a balloon payment is that your credit score will remain high enough that you will be able to get a new mortgage when the time comes. However, your credit score is not completely under your control. There are things that can happen which can wreak havoc with your credit. You could get laid off from your job and have a long stretch of unemployment before you find something else, or you could get into an accident or become ill and unable to work. If something like this happens, you could find yourself saddled with huge medical bills that you may never be able to pay. That can destroy your credit very quickly.You also have no control over the interest rates and terms that will be available in the future. When you get a mortgage with a balloon payment, you could find yourself facing much higher rates when the time comes to refinance, which could result in a higher monthly payment than you can afford. Because you never know what the future will bring, it is almost always better to avoid a balloon payment mortgage if you have any other option.
