Balloon Home Loans
When you need a loan, you are not alone!TM
It May Be The Right Choice For Your Strategy
A balloon loan is a loan that is not fully amortized. This means that at the end of the period when the loan is due, there is additional lumpsum principal amount due that the borrower must pay the lender.
So one might wonder why a borrower would ever opt for such a loan. The reason would be that the payments of such a loan are smaller and more affordable, since some of the principal portion of the payment is being deferred. As such, a borrower who feels that in the near future their income would increase, or that the property will build equity and can be refinanced, covering the balloon payment, may decide to have smaller payments now, and make up the difference later-on.
If you decide to explore this option, please contact us, and we will be happy to assist you to navigate this option and decide whether this type of loan is right for you.