This is a post you want to SAVE! A balloon mortgage is a home loan that has an initial period of low—sometimes interest-only— payments but at the end, the borrower is required to pay off the balance in full. 🎈
Pros of a Balloon Mortgage Lower monthly payments- you pay smaller monthly mortgage payments in the beginning Shorter term- Balloon mortgages typically have a short-term, which means you can own your home outright in a shorter amount of time. 🎈
Cons of a Balloon Mortgage Large lump-sum payment- At the end of the loan term, you are required to make a large lump-sum payment Risky-If you cannot make the balloon payment, you could lose your home. Questions about balloon loans or any type of loan product?
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