Qualify for lower interest rates and shorter terms with a balloon payment loan for your home or business. When a balloon payment house mortgage or business loan matures, usually after five to seven years, the entire balance of the loan is due. After the time limit, borrowers pay off the loan by selling the home, paying cash or refinancing the balance. For some intending to sell their home or refinance quickly, this can be a money-saving option for short-term needs.

Be cautious with a balloon payment house loan. At the beginning of any loan, the majority of the payment goes toward the interest rather than principal. You could wind up owing more than you borrowed at the end of the loan due to negative amortization. You could lose your home if you are unable to pay off the balloon payment home loan or are unable to refinance. Get a balloon mortgage now by doing the following:

1. Check out the current interest rates for balloon loans

2. Calculate your new balloon loan monthly payment

3. Apply for a balloon payment home mortgage online

Action Steps
The best contacts and resources to help you get it done

Shop for interest rates for a real estate balloon payment mortgage

Get the best interest rate and check out the mortgage fees which may include broker fees, closing costs such as inspections, processing fees, title search, underwriting, tax service, flood certification and/or appraisals costs. Check with the mortgage company in advance for a list of all of the costs. Some companies require some or all of the fees up front while others allow you to include the fees in your new loan.

I recommend: Check current interest rates online. Rates may vary by company and by state. Mortgage 101, Total Mortgage and Bankrate.com reveal current interest rates by state.

Look at banks that offer small businesses real estate balloon payment loans

Talk to banks that specialize in real estate programs for businesses. Apply on line or in person with several large national banks for your next real estate loan.

I recommend: The small business department with Bank of America caters to your needs with flexible options such as balloon payments. They have a list of requirements for the loan such as paperwork you will need to bring and calculators to help you choose your best mortgage option. Washington Mutual offers real estate loans for your business; type in your ZIP code to see it this is available in your state.

Apply for a balloon payment home mortgage online

Get the home loan you need fast by applying online. Whether you are buying your house or business location or refinancing to get a better rate, you can get the loan started now.

I recommend: Get balloon payment information and apply for a mortgage online with No Bull Mortgage, Balloon Mortgage Rate or Oak Bank Online.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Some balloon mortgages have an automatic reset feature so the loan will automatically continue after the prescribed time expires, but never assume your loan has this feature. You may be automatically eligible for the new loan with an application fee. Check with your mortgage company for details about this option.
• •  While more common in mortgages, auto loans may also contain balloon payments.