Balloon Mortage Loans

Short Term Mortgages

Balloon mortgages are short term mortgages that normally mature in 5 to 7 years. After the maturity period the loan must be paid in full. Often interest rates offered on balloon loans are lower than conventional 30 year mortgages.

Short term mortgages such as the balloon loan are suitable for home buyers that plan on living in thier home only a short time. If you still own your home at the end of the maturity period you should be able to refinance your home at the then current rates.

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Home Buying Vocabulary

PITI

Short for Principal, Interest, Taxes, and Insurance, which are the components of a mortgage payment.

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Frequently Asked Question

What is earnest money?

Answer:
Earnest money is good-faith money that you put down with an offer to buy a house. This money, which can be just a couple thousand dollars, is applied towards your predetermined down payment. Putting some earnest money with an offer demonstrates that you are serious about your offer. If your offer is rejected, you get your earnest money back, however, if you back out of the deal, you do not get it back.

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