One type of new home loan is a balloon mortgage, which allows homeowners to make lower mortgage payments. Read this article to learn if a balloon...
One type of new home loan is a balloon mortgage, which allows homeowners to make lower mortgage payments. Read this article to learn if a balloon...
View New Home Loans Guide RSS feedAre you considering a new home loan? One type of new home loan is a balloon mortgage, which allows homeowners to make lower mortgage payments. Read this article to learn if a balloon mortgage home loan fits your financial needs.
Want to purchase a home that is slightly above your means? You're not alone - and mortgage bankers know this. That is why they brainstormed the balloon mortgage, a tool that offers buyers affordable monthly payments.
A balloon mortgage is really a combination of two loans. The first is a fixed rate loan that lasts anywhere from three to ten years. This initial stage usually has lower monthly payments than a traditional 30-year fixed mortgage.
Once the initial loan period is up, the remaining balance on the home is due. Thats right, one big payment is owed to the bank. Luckily, most of the time you have an option of refinancing into a new loan. Getting a good deal on a refinance depends on many factors, including your credit score and the current interest rate.
The hope with many buyers is that by the time the fixed rate is up, they will be making more money and will be able to afford the increased costs. Also, many homeowners go into a balloon mortgage with a plan of selling the home in five or seven years, before the huge balance comes due.
Balloon mortgages have the potential to save you cash the first few years. But in the long run, you may find yourself stuck in a sticky situation.
Some politicians are in favor of providing assistance to the millions of homeowners who are facing default as a result of poor decision-making and falling home prices. Others are dead set against it. Let's see where the American people stand.
An open letter to all of the lawmakers and taxpayers who think a mortgage bailout is what we need to solve the housing crisis.
To get borrowers to leave a house--and leave it in good condition--mortgage lenders around the nation have begun offering cash for keys. Some lenders are paying out upwards of $3,000.
Democrats unveiled a new plan last week that will allow the FHA to buy $300 billion in delinquent, underwater mortgages. The initial cost to taxpayers is estimated to be $20 billion.
The worst housing slump since the Great Depression is prompting all manner of new bailout plans. Fed Chairman Ben Bernanke encourages banks to forgive portions of mortgage debt, the Democrats propose using billions in federal dollars on buying up bad loans, and the Bush Administration is prepared to dump bank losses on the taxpayers' shoulders.
Should mortgage borrowers at risk of losing their home be given a bailout? What about lenders who face lost profits? Four recent polls ask Americans where they stand on these issues.
Many people may be losing their homes to foreclosure because of legitimate financial crises, but there are even more people losing their homes because of lender follies as well as their own greed and stupidity. Here are five stories in particular that will be sure to induce fits of eye-rolling.
If you have followed the news at all over the last few months, then you know that the public has been spoon fed a spate of tearjerker news stories that are meant to paint struggling mortgage borrowers as victims. These stories talk about the importance of staving off foreclosures and helping people who need it, but they very rarely touch on the truth of the matter: most mortgage borrowers were reckless and do not deserved to be rescued.
Mortgage company Countrywide Financial is now under fire for the role that they played in the ongoing housing crisis. Critics accuse this mortgage provider of having engaged in questionable lending practices in order to extract maximum profits. Countrywide CEO Angelo Mozilo, who has dumped his own stock, responds to the charges.