All Posts Tagged With: "balloon"
Savvy Consumers Deflate Balloon Note Options
Balloon notes can be seen as mortgages where money remains owed to the lender at the end of the loan term. For instance, suppose we have a $100,000 loan at 6.5 percent interest. Over 30 years the monthly bill for principal and interest would be $632.07 To make a balloon note we could keep the [...]
5Sep2008 | Peter G. Miller | 0 comments | Continued
What’s A Balloon Note?
A balloon note merely means that at the end of the loan term, some or all of the original loan amount is due and payable. This sounds harmless until borrowers realize how much may be due. For example. You have a $50,000 loan at 8 percent interest. You make principal and interest payments on the [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
What’s A “Combo” Mortgage?
Usually, when one talks about a “combo” loan such as 5/1, 7/1, or 10/1 financing, what’s meant is a deal that works like this — a fixed rate for the first five, seven, or ten years and then a transition to a one-year ARM, usually based on the Treasury or LIBOR index, for the balance [...]
30Aug2008 | Peter G. Miller | 0 comments | Continued
What’s a “stealth” balloon note?
There are a number of loan products which sound very similar but are not. For example, you may encounter a “5/25 ARM.” This is a loan with a fixed rate during the first five years and an adjustable rate thereafter. But, some loan programs are subject to a lender review after five years. Borrower beware! [...]
27Aug2008 | Peter G. Miller | 0 comments | Continued
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