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Balloon mortgages are home loans that typically last for shorter periods of time and these types of loans allow the borrower to pay lower monthly payments and interest rates than with a full term loan. Often, when the loan period has ended, the home owner is required pay the remaining balance in full. The final payment is called a balloon payment because of its large size. Because borrowers may not have the resources to make the balloon payment at the end of the loan term, balloon notes may convert the home loan to a fixed or adjustable rate mortgage.
Contact Royal Banks of Missouri to discuss your best home loan options by calling (314) 878-7272. |
