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Expert Insights: What Is a Balloon Mortgage?

Expert Insights: What Is a Balloon Mortgage?

It is a mortgage in which the entire unpaid principal becomes due and payable on a given date, five, ten, or any number of years in the future. The borrower must pay up, refinance, or lose the property. Interest rates on balloon mortgages are lower than for fixed-rate...
Expert Insights: What Is a Two-Step Mortgage?

Expert Insights: What Is a Two-Step Mortgage?

Not to be confused with a biweekly mortgage, this type of home loan is also known as 5/25s and 7/23s. It has one interest rate for part of the life of the mortgage and a different rate for the remainder of the loan. Two steps are 30-year mortgages. They can either be...
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