Long Beach Island Real Estate Balloon Mortgage Payments

Long Beach Island Real Estate Balloon Mortgages

Balloon Mortgage Payment in the LBI New Jersey Real Estate Market

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate

A balloon mortgage payment in the Long Beach Island NJ real estate market is a type of loan in which the bulk of the principal balance is due in full in one large payment at the loan period’s termination. This large payment is called a balloon mortgage payment. There are many types of loans in the LBI real estate market, and while a balloon mortgage is not typical, we do see them under certain conditions.

By : Nathan Colmer | The Van Dyk Group

Cell: 609-290-4293 | Office: 800-222-0131 | ncolmer@vandykgroup.com

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

Long Beach Island Real Estate Balloon Mortgages

The most standard type of loan in the LBI real estate market is a 30-year fixed-rate mortgage. A balloon mortgage is appealing to borrowers in particular situations. The main advantage of a balloon mortgage is a lower interest rate, but this does carry risks. If a borrower cannot make the balloon payment at the end of the loan, they will have to refinance it. If the value of the home has gone down, the homeowner may have a hard time refinancing. In the LBI real estate market, a balloon mortgage is most often used to build a new home. Using this type of loan, if allowed by the bank, a buyer can attain a lower interest rate while the house is being built and refinancing at the end of the construction period. With such a strong equity position usually found in new homes on Long Beach Island, this tends to be a pretty safe bet.

Balloon Mortgage Payments in the LBI New Jersey Real Estate Market

When buying a home in the LBI real estate market with a mortgage, a buyer must explore all lending options. There are MANY types of loans available, and each has its own sets of pros and cons. Therefore, a buyer should discuss the options available to them to see what makes the most sense for their situation. . If you have any questions about buyingselling 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

www.BuyLBI.com

Click here to search all homes for sale in the Long Beach Island NJ real estate market

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