What you should know about balloon loans

A balloon mortgage is one on which the outstanding balance is due at some point before amortization has paid off the balance in full. Aside from the repayment obligation, balloon loans are identical to standard fixed-rate mortgages (FRMs). For example, if a five-year balloon loan for $100,000 is at 5 percent for 30 years, the …

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Mortgage Rates Drop Yet Again to New Lows

It’s a limbo contest in the world of mortgage rates, and each week they’re scooting under the bar. The limbo “dance” dates back to the 1950s, and interestingly enough, the last time rates for 30-year fixed mortgages were as low as they are now was in April 1951. Thirty-year fixed-rate mortgages (FRMs) have been under …

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Mortgage Rates…How Low Can You Go?

Mortgage Rates…How Low Can You Go? There seems to be no bottom in sight for mortgage interest rates. Already at their lowest level in more than a half-century, rates dropped to new record lows again this week. Analysts say we have the weak economy to thank for the continued descent, but that same trigger is …

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