In mortgage-speak, a balloon payment is a payment that reduces the loan by other than the monthly payment. For example, say you structure a loan payment schedule of $1,400 a month, with a $5,000 additional payment due on March 15 of each year when you get your federal income tax refund.
Continue reading...Sunday, November 13, 2011
Adjustible rate mortgages (ARMs) are loans that start out with a low interest rate and then the payment goes up (or down) with fluctuations in the financial index to which the interest rate is linked. These interest rates are usually tied to regional cost-of-funds or Treasury bill rate indexes. As these indexes move up or [...]
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Thursday, November 17, 2011
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