A balloon mortgage is a type of financing in which the borrower must pay off the loan in a single, predetermined sum at the end of the loan term. A borrower can reduce their fixed monthly payment by making balloon payments in exchange for making larger payments at the end of the loan term. The borrower may be responsible for paying mortgage interest. Mortgages with balloon payments are short-term loans with a fixed interest rate for five to ten years. Borrowers with high income and credit scores can benefit significantly from these loans. Lenders are typically selective about who they extend these types of loans to, preferring to work with businesses and individuals with a proven track record of financial stability and a solid revenue stream. BENEFITS OF A BALLOON MORTGAGE: Affordable I...
Comments
1