Posted on: 25th Dec, 2006 11:52 pm
what is baloon mortgage
Hi Nice,
Welcome to the forums.
A fixed rate home loan offered for a short span of time, say 5 to 7 years. The loan is repaid in low monthly installments with the remaining balance paid down at the end of the loan period.
If you are interested to know more on Balloon Mortgage , you may visit our section on this topic.
Thanks,
Sara
Welcome to the forums.
A fixed rate home loan offered for a short span of time, say 5 to 7 years. The loan is repaid in low monthly installments with the remaining balance paid down at the end of the loan period.
If you are interested to know more on Balloon Mortgage , you may visit our section on this topic.
Thanks,
Sara
Hi Nice,
A balloon mortgage is almost similar to that of a fixed rate loan, the difference being in the interest rate which is at time slower than that of fixed rates and the loan term which is shorter.
At times, the interest rates are similar to that of 30 year fixed rate loans. Hence, the monthly payments are then based on a 30 year amortization schedule for the fixed period of 5 to 7 year. At the end of this period, the borrower has to make a lump sum payment in order to pay off the loan.
Thanks,
James.
A balloon mortgage is almost similar to that of a fixed rate loan, the difference being in the interest rate which is at time slower than that of fixed rates and the loan term which is shorter.
At times, the interest rates are similar to that of 30 year fixed rate loans. Hence, the monthly payments are then based on a 30 year amortization schedule for the fixed period of 5 to 7 year. At the end of this period, the borrower has to make a lump sum payment in order to pay off the loan.
Thanks,
James.
what do u mean by FIO..?
Hi Harsha!
Welcome to MortgageFit Forums!
Flexible income option is also known as FIO. It is available only on certain qualified plans. In this option, the annuitant should be of 59 1/2 or greater age. With this option, the person may receive the required minimum distribution. Every year the minimum distribution amount will be calculated on the basis of annuitants life expectancy.
Hope this helps you.
Thanks,
Jerry.
Welcome to MortgageFit Forums!
Flexible income option is also known as FIO. It is available only on certain qualified plans. In this option, the annuitant should be of 59 1/2 or greater age. With this option, the person may receive the required minimum distribution. Every year the minimum distribution amount will be calculated on the basis of annuitants life expectancy.
Hope this helps you.
Thanks,
Jerry.