USellHome.com

Articles and Resources about Real Estate

 
Articles and Resources
Types of Real Estate
Investing in Real Estate
Flipping
Distressed Properties
Foreclosures
Real Estate Auctions
Tax Liens
Types of Real Estate Financing
Zero Down Loans
Terminology of Real Estate
Abstract of Title
Acceleration Clause
Adjustable-rate Mortgage
Affidavit of Title
Amortized Loan
Annual Percentage Rate (APR)
Appraisal
Appreciation
Assumption of Mortgage
Balloon Payment
Blanket Loan
Broker
Capital Gain
Certificate of Title
Chain of Title
Closing Statement
Cloud on Title
Conditional-Use Permit
Contingency
Contract
Conveyance
Cost Approach
Counteroffer
Convenant
Deed
Deed in Lieu of Foreclosure
Deed Restriction
Discount Point
Earnest Money
Equity
Escrow Account
Exclusive Agency Listing
Fair Housing Act
Fannie Mae
Farmer's Home Administration
Federal Deposit Insurance Co.
Federal Reserve System
FHA Loan
General Warranty Deed
Graduated-Payment Mortgage
Growing-Equity Mortgage
Home Equity Loan
Homeowner's Insurance Policy
Homestead
Installment Contract
Installment Sale
Interim Financing
Involuntary Lien
Joint Tenancy
Land Contract
Lease Option
Loan-To-Value Ratio
Marketable Title
Market Value
Mortgage Lien
Mortgagor
Open-End Loan
Package Loan
Percolation Test
Power of Attorney
Prepayment Penalty
Primary Mortgage Market
Private Mortgage Insurance
Procuring Cause
Promissory Note
Prorations
Quiet Title
Quitclaim Deed
Rate Cap
Recording
Regulation Z
Restrictive Convenants
Severalty
Special Assessment
Survey
Title Insurance
Title Search
Balloon Payment

A balloon payment mortgage is a mortgage that has a final payment that is much larger than a regular payment.

Borrowers get lower rates and payments for a specific period of time, which usually is anywhere from three years to 10 years. At that point, a borrower has to pay off the principal balance in a lump sum. Under certain conditions, the mortgages can be converted to fixed-rate or adjustable-rate loans . Many borrowers either sell their homes before they get to their due dates or end up refinancing their balances into new mortgages. If you plan on either selling your home, paying it off, or refinancing it before the balloon payment is due, then this type of mortgage is good deal.

Pro Save on mortgage costs initially -- a great option if you don't plan on living in the home long.

Con Plans sometimes change. If yours do, you will have to pay off or refinance the balance, which takes time, effort and more closing costs .

Retrieved from " http://en.wikipedia.org/wiki/Balloon_payment_mortgage "

 


Warning: fopen(http://news.search.yahoo.com/news/rss?p=Balloon+Payment&ei=UTF-8&fl=0) [function.fopen]: failed to open stream: HTTP request failed! HTTP/1.1 999 Unable to process request at this time -- error 999 in /home/sellhome/public_html/news/16.php on line 123
could not open XML input
Warning: fopen(http://news.search.yahoo.com/news/rss?p=Zero+Down+Loans&ei=UTF-8&fl=0) [function.fopen]: failed to open stream: HTTP request failed! HTTP/1.1 999 Unable to process request at this time -- error 999 in /home/sellhome/public_html/news/11.php on line 123
could not open XML input

Advertisers
 

 

 

 

 

 

 

 

 

 

 
   
     

Usellhome.com Copyright 2005 - Designed by Hip Aviles