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Balloon Payment

I have read that some people are getting approved loan modification and some have balloon payments at the end. Does all HAMP modification have balloon payments? What does a balloon payment exactly mean? Does this mean at the end of lets say a 30 year term you would owe the remaining balloon payment?

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jack!

Welcome to forums!

In case of a loan modification, the lender lowers the interest rate in order to make the payments affordable for the borrower. Such a lower rate may remain for the whole term of the loan which might increase your loan term. Or else, it will remain effective for a certain period of time, after which you will be liable for paying a lump sum amount in order to pay off the balance debt amount.

Feel free to ask if you've further queries.

Sussane

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:45 | Post subject:

jameshogg's picture
jameshogg | Joined: December 20, 2005 02:58 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi Jack,

As far as I can understand, after the end of the 30 year term, you will be liable for paying the balloon payment to the lender.

Thanks

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 03:45 | Post subject:

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