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Balloon Mortgage, Texas Mortgage and Loans
Looking for the right type of mortgage for you and your family, can be a huge hassle for all the people involved. There are some people that just need to get a certain type of mortgage just to begin the payments.
A Balloon Mortgage actually has two types. One type of mortgage is a 7 year balloon and the other is a 15 year balloon. They both can get complicated in the details. A 7 year balloon mortgage means that the lender will give you a certain fixed interest rate in the beginning when you sign the lease. After seven years, you are then expected to pay off the remainder of the mortgage in one large lump sum. This is why it is called a balloon payment.
A 15 year balloon mortgage works about the same way. You begin the mortgage with a fixed interest rate for the first 15 years of your mortgage. After 15 years has passed, the lender will then expect you to pay the remainder of the mortgage in one lump sum.
There are a few pros and cons to having this type of mortgage. This might be just the type of mortgage for you if you plan on paying large payments at the beginning. Once you have made those first years of large payments, your balloon payment might be a lot lower. If you find you don’t have the money to pay the balloon payment, you could also consider refinancing your home at that point. It will all be based on what you and your family can afford.
For more information on your Texas Mortgage, contact Texas Mortgages and Loans.
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