Posted on: 30th May, 2006 04:34 pm
What is a 30/15 balloon? I understand the balloon, but not sure I am interpreting this format correctly.
Hi,
This is a fixed rate balloon loan product. Here, the rate remains fixed for 15 years and the payment is amortized over a period of 30 years to give a lower monthly payment.
The loan becomes due and payable as a balloon loan at the end of the 15 year period.
This is a fixed rate balloon loan product. Here, the rate remains fixed for 15 years and the payment is amortized over a period of 30 years to give a lower monthly payment.
The loan becomes due and payable as a balloon loan at the end of the 15 year period.
Thanks a million!
Hi,
It was my pleasure. Feel free to visit our community and share your queries and views with us. :)
James
It was my pleasure. Feel free to visit our community and share your queries and views with us. :)
James
A 30/15 balloon is a 15 year balloon having the payment of a 30 year mortgage. The payments appear as if it was a 30 year loan but the loan has to be paid off in 15 years.
You can choose whatever schedule you want to meet the payments. For example, you van make extra payments towards the principal so as to get it paid off in 15.
This loan is very common especially its fixed rate makes it attractive. You have the option to pay faster on your own to get it paid down faster.
You can refer the page on "Balloon Mortgage" to know more about it.
You can choose whatever schedule you want to meet the payments. For example, you van make extra payments towards the principal so as to get it paid off in 15.
This loan is very common especially its fixed rate makes it attractive. You have the option to pay faster on your own to get it paid down faster.
You can refer the page on "Balloon Mortgage" to know more about it.
Thanks so much!