How Do You Get A Balloon Mortgage?
A balloon mortgage carries a fixed rate, just like a regular 30-year mortgage. The trick is, in three to ten years, the full remaining balance comes due. Proceed with getting a balloon loan exactly as you would for any other mortgage. (Note the distinguishing factor that a balloon mortgage generally carries a lower-than-normal fixed interest rate for the initial period – usually three to ten years.) Ask the lender about the interest rate. Ask the lender when the balance will come due. Ask if there’s a refinance option when the balance comes due. Ask if the refinance option (if any) can be lost or forfeited, and if so, how. Ask if you would have to re-qualify for a mortgage when the balance comes due.
