Since mortgage loan institutions have always been operating on commercial basis, they did their best to cover all possible cases of mortgage loan needs and provided the consumer with a vast range of mortgage loan options to choose from. A good example of a new type of a mortgage loan is a so called balloon mortgage loan.
Definition: a balloon home mortgage loan is a special type of loan which implies a lower mortgage loan interest rate payable for a shorter period of the financing term. It ranges from five to ten years, usually itís about seven.
After the pre-agreed initial term of the mortgage loan life is over you will be required to make a lump sum mortgage payment to cover the rest of your outstanding mortgage loan balance. Of course, thatís a lot of money you have to put down right away the same day, however itís a great mortgage loan type if you want to sell your house in several years and go for a new mortgage loan refinancing.
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