Balloon Home Mortgage Loan
Balloon loans are short term mortgages that have some features
of a fixed rate mortgage. The hawii balloon loans provide
a level payment feature during the term of the loan, but as
opposed to the 30 year fixed rate mortgage, balloon loans
do not fully amortize over the original term. Balloon loans
can have many types of maturities, but most balloons that
are first mortgages have a term of 5 to 7 years but can go
up to 10 years.
the end of the loan term there is still a remaining principal
loan balance and the mortgage company generally requires that
the loan be paid in full, which can be accomplished by refinancing.
Many companies have other options such as a conversion feature
at the end of the term. For example, the loan may convert
to a 30 year fixed loan at the thirty year market rate plus
3/8 of a percentage point. Your conversion can be guaranteed
based on certain criteria such as having made your last 24
payments on time. The balloon mortgage program with the conversion
option is often called a 7/23 Convertible or 5/25 Convertible.
Today 855-529-5222 to learn more about the Hawaii Balloon Home Loans.