Balloon Mortgage

Balloon mortgage is most commonly used for commercial mortgage. Balloon mortgage payments does not fully amortize over the term of the note, the last payment includes all remaining interest and unpaid principal, and often comes to quite a large total. This introduces a certain amount of risk, but they can be quite beneficial if borrower is anticipating immediate cash flow for his/her business venture. Balloon mortgage loans are a good product for people looking for a lower interest rate.

Adjustable rate mortgages are sometimes confused with balloon payment mortgages. The difference is that a balloon payment may require refinancing or repayment at the end of the period (if you are unable to repay the entire balance); some adjustable rate mortgages do not need to be refinanced, and the interest rate is automatically adjusted at the end of the applicable period. Balloon payments are often prepackaged into what are called "two-step mortgages." In this type of mortgage, the balloon payment is rolled into a new or continuing amortized mortgage at the prevailing market rates.

Balloon mortgages are most popular with 2nd mortgage notes, such as a 30 year amortized note due in 15 years (30/15). The monthly payment with a 30-year amortization will be lower than if the property is financed with a 15-year mortgage. The interest rate for the five or seven-year period may be lower than the rate for a 30-year fixed rate mortgage. The goal with a balloon payment mortgage is to obtain a low, fixed monthly payment with the plan of selling the property at a profit before the balloon payment is due. You can also refinance your balloon mortgage prior to its maturity and obtain a new fully amortizing loan.

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Why Henry Munoz For Your Real Estate Financing, Listing Or Purchase Transactions

 Henry Munoz is a California Department of Real Estate licensed Real Estate Broker and Loan Officer.He has exceptional reputation as a Hard Money / Soft Money Private Money Lender in Torrance,California and  built on his capability to provide quick financing solutions for borrowers. Henry has  23  of years in residential, commercial, and business purpose loans secured by real estate, He is able to process your loan application quickly and give quick answers once the  property has been reviewed  to include a Title report and borrower information received.Fast answers usually usually 2-5 days.

Henry also holds a Los Angeles County Legal Document Assistant Registration which is a independent practicing paralegal.This come in handy when there are legal and title issues with a property.In order to obtain this registration,you must have completed a  accredited program in paralegal studies.In addition having and active bond.

As a Broker,he has acess to private and institutional lenders that are not be availble to the general public.Most loans are based on the value of the property and the loan to value.

Typically an asset based loan does not require exhaustive financial evaluation of the borrower.I welcome loans turned down by Banks and other Lenders.

Call Henry Munoz direct at 310-975-9739

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