Balloon Loan Mortgages Balloon rate mortgages are beneficial for borrowers who know they will move out of a house before the rate goes up. Balloon rate mortgages are for a fixed time. 1, 3, 5 or 7 year periods are typical and the interest rate on a balloon mortgage is usually lower than an adjustable rate mortgage.

For instance, you borrow for 5 years time: the principle come due as a lump sum payment at the end of the 5 year period. If you have not sold your home after those 5 years, it forces you into a new loan. If the rates are higher, your payments can jump.

Some balloon mortgages require payment in full at the end of the period. If you had not sold the property, new refinancing costs would apply to the new loan. But since you paid off some of the principle, the loan would be for less.

This type of loan makes sense if you are very sure that you are going to move before the balloon mortgage becomes due. If interests rates skyrocket you may be in for a rude surprise.

Basic Mortgage Loan Programs:
— Adjustable Rate Mortgages
— Fixed Rate Mortgages
— Home Equity Line of Credit (HELOC)
— Balloon Programs
— Credit Repair Loans

Using a mortgage rate calculator provides an invaluable aid for the borrower to assess his cost and see the overall picture of his financing responsibilities. They provide a great tool for those who want to investigate the advantages of paying back the principal faster, lowering monthly payments and/or consolidating debts.

Which Loan Program Will Save Me Money?
• Which loan is better?
• I would like to shop multiple lenders
• Which lender has the better loan?
Use the Mortgage Calculator Mortgage Payment Calculators

Using a financial calculator you can:

• Calculate how a change in interest rate will affect the monthly payment and the term length of the home equity loan.
• Calculate the monthly payment of a particular mortgage loan.
• Calculate how much you have to make to afford the mortgage loan on a particular home.
• Calculate if you should pay discount points when you get a mortgage loan
• Calculate how long it will take to recoup the costs of refinancing.
• Calculate how much interest on your mortgage loan you will be able to deduct from your taxes