FLORIDA KNOWLEDGE CENTER

A mortgage that is paid in full after a period of years that is shorter than the term of the loan. For Instance, A ten year balloon loan would have its payments calculated over a 20-30 year period, however, the full balance of the loan would have to be paid in ten years. This is often referred to as a 30 due in 10, 30 due in 15 (15 year balloon), etc.

There is a way to get around balloon payments in small balanced commercial mortgage. New companies such as SilverHill Financial, and Interbay, have offered programs that are fully amortized up to 30 years. They also have rates that decrease every X amount of years with on time payments.

Considering that 70% small business that include real esate are handed down to the next generation, balloon payments don't really make sense.

Why keep refinancing becuase of a balloon payemnt, when you plan to stay in the property long term. Please talk to your licensed mortgage professional for more information.

Some Borrowers may not have the resources to make the balloon payment at the end of the loan term. A 2 step plan may be used with balloon payment mortgages. Under the two-step plan, sometimes referred to as "reset option", the mortgage note "resets" using current market rates and using a fully-amortizing payment schedule.

A big problem with a balloon loan, is the person needs to be very disciplined in financial planning for the large single payment. Balloon loans are commonly used when refinancing or when a big cash event is coming up.

Most income producing properties are financed with Balloon Mortgages. Investors prefer the lower monthly payments that come with Balloon Mortgages. Everything else being equal, an investment with a constant cash inflow is always better than one that requires capital injection.

Some Balloon Mortgages have an "extendible" feature. Balloons with such feature gives the mortgagor the option to renew, or extend, the mortgage when the balance becomes due, provided that certain conditions are met. The extendible feature can save the mortgagor thousands of dollars in refinance costs. An example of an extendible Balloon Mortgage commonly utilized to finance small commercial properties and multi-unit apartments is the 5-5-5-5-5, in which the payment is amortized over 25 years, but is due in 5 years, with the option to renew the loan at the end of each 5 year period.

In addition to a conventional second mortgage, Home Equity Lines of Credit often have a balloon feature. These HELOCs usually have a draw period, then a repayment period and then a balloon if the line is not pais off by the end of the repayment period.

A balloon mortgage is one where after the initial period the remaining balance is due in one lump sum. Usually a balloon mortgage is refinanced prior to the balloon payment coming due. A balloon mortgage provides the borrower a reduced payment during the initial period.

Don't be afraid of a mortgage with a balloon payment. Statistically these days people move every 4 or 5 years. Often people with a balloon mortgage either move or refinance long before the balloon payment is due.

A balloon mortgage is a good way to keep you payments low, keeping in mind that there will be a large payment(balloon) due at the end of the balloon term.

The alternative to a balloon would be to get an Adjustable Rate Mortgage (ARM). An ARM will adjust after the fixed period while the balloon needs to be paid in full or refinanced. We will discuss what is right for you.

Second mortgages often are balloon mortgages in order to keep the payments down for the borrower. A 15 year mortgage will have a higher payment than a 15 year balloon mortgage.

Most often the borrower will plan to refinance in a certain period of time to pay off the note before it becomes due.

Florida Mortgage Rates

Getting the right Florida Mortgage Program and Rate is probably the most important part of choosing your Florida Mortgage Loan. Having the best Florida Mortgage Rates will save you thousands of dollars through out the course of the mortgage Loan.

At American Mortgage Rates, we strive on finding the best Florida Mortgage Program and Rate possible for you, the client! Our Licensed Florida mortgage brokers constantly educate them selves on the latest and best Florida mortgage programs to better serve you. There are many different loan programs to choose from which all have different Florida Mortgage Program and Rate, so by staying educated in this area allows us to find you the best Florida Mortgage Program and Rate possible.

Fortunately, due to our production in the mortgage industry we have been able to meet certain standards with our lenders and banks. These standards allow us to pass additional savings to you the client because of our preferred pricing on our Florida Mortgage Program and Rate. Your Florida mortgage broker should go over all the possible Florida Mortgage Program and Rate when choosing your Florida Mortgage.

When inquiring about a Florida Mortgage to your Florida Mortgage broker, be sure to ask about what kind of pre-payment penalty that is associated with that particular Florida Mortgage Program and Rate, some Florida Mortgage Program and Rate have no pre-payment penalty where some have very high penalties. This is something your Florida Mortgage broker should go over with you when choosing the best Florida Mortgage Program and Rate for you.

Feel free to call or inquire over the web about today's Florida Mortgage Program and Rate, we will be happy to quote today's best Florida Mortgage Program and Rate that we have available to us.

Since we work with many Lenders we get the best Florida Mortgage Program and Rate available where when dealing with one particular bank they are limited to there own loan products where they might not have the best available Florida Mortgage Program and Rate that day, when banks compete with each you the savvy mortgage shopper could take advantage of this by working with a real good Florida Mortgage Broker who is up on the Florida Mortgage Program and Rate.

A fixed rate mortgage is a mortgage that has a fixed interest rate for the term of the fixed rate mortgage term. This means your principal and interest payment will not change for the entire term of the loan until it is paid off. A 30 year fixed rate mortgage means that you mortgage is fixed for 30 years. A 15 year fixed means the same that your payment will not change for 15 years and then your mortgage will be paid off.

An Adjustable rate mortgage is a mortgage that has an adjustable interest rate for the term of the mortgage. This means your principal and interest payment will change for the entire term of the loan until it is paid off. Adjustable mortgages can adjust monthly, yearly, or sometimes mat be fixed for 2, 3, 5, 7 and 10 years and then start to adjust more often.

For more information about our many loan programs and Florida Mortgage Program and Rate please call us at 954-475-8787 or fill out our short mortgage form.

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