What is a 7 Year Balloon Mortgage?
Your monthly payment is calculated based on a 30 year amortization schedule, but you are required to pay off your outstanding balance after 7 years. This loan is for you if you are certain you will be moving or refinancing on or before the 7 year deadline, and you wish to have the security of a fixed payment amount during this period. Note: Some balloon programs offer the borrower a Conditional Right to Reset which effectively provides for an extension beyond the initial fixed period.
