A balloon mortgage has an interest rate that is fixed for an initial amount of time. At the end of the term, the remaining principal balance is due. At this time, the borrower has a choice to either refinance or pay off the remaining balance.
There are no penalties to paying off a balloon mortgage loan before it is due. Borrowers may refinance at any time during the life of the loan.
Balloon loans typically have either 5 or 7-year terms. For example, a 7-year balloon mortgage with an interest rate of 7.5% would feature this interest rate for the entire term. After 7 years, the remaining loan balance would become due.
Pre-qualify for a loan in a few simple steps
Get StartedFill out your Secure Application
Apply NowSee what our clients are saying:
TestimonialsWe've been helping customers afford the home of their dreams for many years and we love what we do.
Company NMLS: 1465644 CALBRE: 01998648
www.nmlsconsumeraccess.org
313 Sycamore Valley Rd
Danville, CA 94526
Phone: (925) 838-1460
info@bayareafunding.com
Powered By LenderHomePage.com