Balance Due At Maturity The conventional residential real estate mortgage has a structure, which includes monthly repayments of principal and interest, where the payments over the term of the loan pay off the principal entirely, and nothing is due at maturity. In other lending instruments, such as corporate bonds, the borrower has to make payments […]
Tag Archive | "balloon mortgage"
It sounds a little strange doesn’t it that companies would come up with the name “balloon” to describe a mortgage. However, it makes more sense when you understand what a balloon mortgage is. It allows you to borrow a larger amount, paying only on a percentage of what is borrowed, and then making one “balloon” […]
Balloon mortgages involve the payment of a lump sum to clear the outstanding mortgage loan after a specific period of time. A common form of balloon loan in the auto industry is to borrow a certain sum to purchase a car, and agree to a balloon payment at the end of the loan period. For […]