Balloon Mortgages

Although less common than the more traditional fixed-rate and variable-rate mortgages, balloon mortgages are a popular, if niche, lending option. Most mortgage options pay off the entire loan and interest by the time the loan matures, leaving the borrower with no further obligation. Balloon mortgages, however, leave part of the balance due upon maturity. This has a potentially significant benefit for borrowers in certain financial situations.

If you are having a difficult time paying off your mortgage, the Milwaukee foreclosure defense attorneys of the DeLadurantey Law Office, LLC may be able to help protect you and your investment. Contact us today at 414-377-0518 for more information.

Balloon Mortgage Advantages

The primary benefit of the balloon mortgage is that it allows people to pay a mortgage at 30-year rates while only keeping the mortgage for seven years. This may make the balloon mortgage ideal for borrowers who intend to sell the property and do not want to take a longer term. Additionally, balloon mortgages usually have a lower initial rate than other forms of loans.

Balloon Mortgage Disadvantages

The primary disadvantages of a balloon mortgage also stem from its short term. While they may be reset after seven years, a borrower may be caught with a larger interest rate than he or she originally signed. If, as a borrower, you intend on keeping the property, a balloon mortgage may not be the best option for you.

Contact Us

The Milwaukee foreclosure defense attorneys of the DeLadurantey Law Office, LLC may be able to help you protect your home. Contact us today by at 414-377-0518 to put our legal experience to work for you.