Mortgage Options
- This agency-regulated-product offers a variey of loan terms from 8 years to a maximum of 30.
- The interest rate is set at the time of closing and remains constant over the entire loan term.
- Transactions with less than 20% invested into the value of the property will typically require Private Mortgage Insurance, which can be removed when certain criteria is met.
- Minimum down payment programs are available for qualified applicants.
- This is a type of loan that does not fully amortize over its term, meaning the loan will not be paid in full after the 5 years of payments have been made
- Thus, a balloon payment is required at the end of the term to repay the remaining principal balance of the loan
- Balloon loans can be attractive to short-term borrowers because they typically carry lower interest rates than loans with longer terms
- Borrowers must be aware that the balloon payment will pay off the existing balance which could require refinancing, at the risk of a higher interest rate