Have Trident Mortgage Set You Up with a Balloon Mortgage
August 25, 2008 by TJ
Typically, a balloon mortgage is a short-term, fixed-rate mortgage that offers a lower interest rate during the repayment period, but it requires a large lump-sum payment due at the end of a specified term.
Most mortgages are set up so that you pay off the loan gradually by the monthly payments that you make over the loan term (for example, 30 years). With a balloon mortgage, you make the same monthly payments that you would for a 30-year loan, but after a shorter period of time (for example, 7 years), the entire remaining balance of the loan is due.
When the balloon payment is due, you will usually need to refinance your loan to pay it or sell your home if you cannot refinance the loan.
Consider a balloon mortgage if:
1. You plan to sell your home before the end of the specified term
2. You plan to refinance your home before the end of the specified term
3. You’re prepared to pay off your loan at the end of the specified term
Trident Mortgage in Unionville will be happy to help you set up a balloon mortgage, answer any questions you may have about one or pretty much anything involved with getting that dream house you always wanted. Contact them today!
John Gamlin
Mortgage Planner
1689 West Doe Run Lane
Unionville, PA 19375
Phone: 610-388-9683
Fax: 610-388-7554
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