Balloon Home Loan
July 3rd, 2008
The balloon home loan is most attractive for a person that will only be in the home for a few years. The time frame for financing through a balloon home loan is shorter than a typical, a period of 7 to 10 years. At the end of the contractual time frame the entire balance becomes due. In a sellers market this type of mortgage presents no problem. In a buyers market if a buyer can not be found before the balloon is due trouble will ensue. If faced with this situation mortgage refinancing will be necessary to avoid foreclosure on the home.
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