In these days of hustle and bustle, and everybody just generally being in a hurry, it is also true that you can get a mortgage that way, too. But the speed and the rush that may surround your getting a mortgage for that home that you wanted, may also have prevented you from finding out what you really got yourself into. Balloon mortgages are becoming more common, but are they as good as some claim? Here are some things you need to know about balloon mortgages before you sign your name to one of these contracts.
Like other mortgages, a balloon mortgage is taken out for 30 years. One difference, though, is that it never fully amortizes. Typically, they will be required to be paid in full after only 5 or 7 years, but some also go for as long as 15. Like a regular mortgage, the payments are based on the 30-year period in order that the payments would be the same.
The difference comes in the “balloon” part. Just like balloons are large and can suddenly get in your way, so is a balloon mortgage. At the end of the 5, 7 or 15 years, when it becomes due, you owe the entire balance. Since most people cannot afford to hand over such large sums of money in such...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
