Balloon payment loans will have a lower payment for a higher priced home over a 15- or 30-year term. Upon maturity of the loan, a large payment is then due on the home, oftentimes 10 to 20 percent of the original value of the home. Balloon payment loans often require a down payment of 5 percent; the interest rate is determined on an individual's credit worthiness. The balloon payment can often be refinanced over a longer term once the loan has reached its maturity date.
Posted in: Types of Home Loans
0 comments:
Post a Comment