How to Get a Balloon Mortgage
- 1). 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.)
- 2). Ask the lender about the interest rate.
- 3). Ask the lender when the balance will come due.
- 4). Ask if there's a refinance option when the balance comes due.
- 5). Ask if the refinance option (if any) can be lost or forfeited, and if so, how.
- 6). Ask if you would have to re-qualify for a mortgage when the balance comes due.
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