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Balloon Mortgage Note Form Balloon Mortgage

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Instructions and help about Balloon Mortgage Note Form Balloon Mortgage

in this video we're going to discuss balloon mortgages so a balloon mortgage is a mortgage in which the monthly payments are not going to be enough to amortize or to pay off the loan so let's say it's a seven-year balloon mortgage by the end of seven years the loan will not be paid off so what you have is you have one final payment one final payment that's really really large much larger than the previous payments and that's called the balloon payment and that is to finally like amortize and pay off the loan although typically you're going to actually refinance the balloon so it's a little bit easier if I just get into an example and I'll show you what we're talking about here so let's say that we had a seven-year balloon mortgage and let's say that it was for an amount of one hundred and forty thousand dollars and the interest rate you're being charged is four point five percent interest so

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