15 year balloon mortgage with 30 year amortization schedule

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Icon Mini Profile 1tan





Joined: 30 May 2006

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Post Posted: Tue May 30, 2006 4:34 pm    Post subject: 15 year balloon mortgage with 30 year amortization schedule
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What is a 30/15 balloon? I understand the balloon, but not sure I am interpreting this format correctly.
Icon Mini Profile jameshogg
jameshogg




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Post Posted: Tue May 30, 2006 4:43 pm    Post subject:
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Hi,

This is a fixed rate balloon loan product. Here, the rate remains fixed for 15 years and the payment is amortized over a period of 30 years to give a lower monthly payment.

The loan becomes due and payable as a balloon loan at the end of the 15 year period.
Icon Mini Profile 1tan





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Post Posted: Tue May 30, 2006 4:45 pm    Post subject: Balloon Mortgage
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Thanks a million!
Icon Mini Profile jameshogg
jameshogg




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Post Posted: Tue May 30, 2006 4:50 pm    Post subject:
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Hi,

It was my pleasure. Feel free to visit our community and share your queries and views with us. Smile

James
Icon Mini Profile blue
blue




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Post Posted: Tue May 30, 2006 5:18 pm    Post subject: 30/15 balloon
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A 30/15 balloon is a 15 year balloon having the payment of a 30 year mortgage. The payments appear as if it was a 30 year loan but the loan has to be paid off in 15 years.

You can choose whatever schedule you want to meet the payments. For example, you van make extra payments towards the principal so as to get it paid off in 15.

This loan is very common especially its fixed rate makes it attractive. You have the option to pay faster on your own to get it paid down faster.

You can refer the page on "Balloon Mortgage" to know more about it.
Icon Mini Profile 1tan





Joined: 30 May 2006

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Post Posted: Tue May 30, 2006 5:22 pm    Post subject: Balloon
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Thanks so much!
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