Balloon/Reset Mortgage Information
This type of mortgage is very interesting the way that the terms are set, instead of having a fixed-rated or an adjustable-rate, the monthly mortgage payments are actually taken off of a 30-year amortization schedule. However, the entire loan must be paid off within five to seven years, unless you reset your mortgage with the current rates. Many borrowers refer to this type of mortgage at the “two-step” mortgage.
This comes with the great advantage of paying a mortgage payment every month that resembles a 30-year loan, but at the end of five or seven years, the whole entire loan must be paid off. For individuals or families that want to own a home now, and will be getting significant money in the next few years this can be a great option to pay the least amount of interest as possible and still pay off the loan before having the to use the current rates and paying a lot more interest. Come over to Cincinnati Home Mortgage and get lots of information about this topic.
