Long Beach Island Real Estate Balloon Mortgages
Balloon Mortgages in the LBI Real Estate Market 
Balloon Mortgages in the LBI Real Estate Market 
Balloon Mortgages in the LBI Real Estate Market
Long Beach Island Real Estate Buyers and Mortgages
A balloon mortgage is a specialized type of loan product in which fixed monthly payments are made with a final large sum, the balloon payment, being due at the end of the mortgage term. Balloon mortgages can have pros and cons for the buyer depending on the reason for the purchase and the nature of the purchase in the LBI real estate market. The most common elements of a balloon mortgage are:
- Fixed monthly payments
- An established length of time for the loan
- A final large payment being due at the end of the term (the balloon payment)
By : Nathan Colmer | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
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Balloon Mortgages in the LBI Real Estate Market
When dealing with a balloon mortgage, a buyer must understand that at a specific point in time in the course of the loan, the entire principal balance will be due. Under the terms of a balloon mortgage, generally speaking, the mortgage will be amortized as it would be for a conventional 30 year fixed mortgage, 15-year mortgage, etc. with regular monthly payments in place. At the agreed-upon date, the remaining principal balance will be due in full, and it will be the obligation of the borrower to make that payment. The difficulty here can be if the borrower does not have the funds available to make the balloon payment, they could end up in foreclosure or incurring additional costs.
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Buying in the Long Beach Island Real Estate Market
Balloon mortgages do have a place in the LBI real estate market; however, they are one of the less popular loan products we see utilized. Generally speaking, buyers will opt for either a 30-year conventional fixed-rate mortgage or a longer-term adjustable-rate mortgage. When looking to build new construction in the LBI real estate market, construction loans and interest-only loans are generally to go-to products for their simplicity. As is the case with any mortgage, it is advisable to consult with a lender to understand the rate, terms, etc. and determine what loan product is the best option for you. If you have any questions about buying, selling or investing in the LBI real estate market, please do not hesitate to contact me.
By : Nathan Colmer |LBI Real Estate Agent | The Van Dyk Group
Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com
Click here to search all homes for sale in the Long Beach Island NJ real estate market
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