An Attractive Alternative
Are you planning to say in your home for a short time? Hoping to upgrade to a larger home within a 7 year period? We have the perfect loan for you! The 7-Year Balloon typically offers a lower rate when compared to a 15 or 30-year fixed rate mortgage or a 7/1 Standard ARM, allowing you to qualify for more home while enjoying lower monthly payments.
How It Works
Balloon loans are short-term fixed rate loans that offer a fixed monthly payment based upon a 30-year amortization schedule and a lump sum payment at the end of its 7-year loan term.
Your Pay Off Options
- Pay off the balloon at maturity ( end of 7-year period)
- Refinance into a conditional fixed rate mortgage - Perfect for qualified borrowers who decide to stay in their homes for more than 7 years, Offers eligible borrowers a safety net against a large lump sum payment at the end of the 7-year term, Take advantage of the streamlined qualification process that saves you time and money: depending on the fixed rate of the new mortgage, the borrower and property may not need to be re-qualified.
- Refinance into any other mortgage product for while you qualify
More Benefits
With our incredible menu of mortgage products, we can offer other programs that work in conjunction with the 7-year Balloon such as Home Equity Line of Credit and our Equity Bridge.
Contact me today to lock a fixed rate mortgage with a great rate!
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Disclosure Notice:
7-Year Balloon Example: 7-year term (84 payments), interest computed based on 30-year amortization period, no points, $370,000 purchase price, 80% financing, $296,000 loan amount, 5.25% fixed rate. Assumes APR of 5.57% for life of loan. 83 monthly principal and interest payments of $1,634.52. At maturity date, the 84th monthly payment of $262,111.78 pays off the principal loan balance.
This information was correct as of the time this document was prepared. However, loan programs are subject to cancellation or change without notice. Restrictions apply. Some products may not be available in all states. Some programs require excellent credit and the requirements for such loans may be tougher. Examples of factors that may disqualify an applicant for such programs are: late payments, unpaid balances on accounts too high (e.g., credit cards at maximum), credit history too short, too many accounts (with balances). If you apply for a low documentation program, lender will order your credit report (and that of any co-applicants) to confirm excellent credit history and timely account payment, particularly for the past 24 months. |
