texas mortgage rates
Your Texas Mortgage Rates
Lending Source

10721 Jackson Lane, Frisco TX 75035

Phone: (214) 387-0683       Fax: (214) 387-0185       Email Us

 
 
 

7 Year Balloon Mortgage

The 7-Year Balloon with a conditional refinancing option may be a good alternative for your customers. Monthly payments are attractive because they are based on a 30-year amortization, while yields are based on the shorter term of the loan. The conditional refinancing option provides a safety net, allowing borrowers to refinance at maturity with a 23-year fixed-rate mortgage, provided certain conditions are met.

 

The Target Audience for 7-year Balloons 

This product may be ideal for borrowers who intend to remain in their homes for a short period of time.  Also, borrowers whose financial objectives include lower initial monthly payments or the ability to qualify for a larger mortgage may also be candidates.

 

null

Consumer Benefits

 

  • Offers a lower cost fixed-rate financing alternative to 15- and 30-year fixed-rate mortgages.
  • Affordable monthly payments can be made even more attractive by pairing it with a temporary interest rate buy down.

 

 

 

 

 

 

For borrowers who:

A 7-year balloon delivers:

Plan to stay in their homes for less than 7 years

Balloons provide a lower cost fixed-rate financing alternative to 15- and 30-year fixed-rate mortgages.

Desire lower initial monthly payments

The affordable monthly payments can be made even more attractive by pairing it with a temporary interest rate buy down.

Plan to stay in their homes for more than 7 years

The refinance feature eases concerns about the availability of financing at loan maturity.  Borrowers need not re-qualify if certain conditions are met.

 

Eligibility Criteria for Balloon Mortgages

Loan Purpose

Purchase money and "limited cash-out" refinance mortgages.

Loan Type/Term

Conventional fixed-rate, level-payment first liens with 7-year balloon terms amortized over 30 years.

Property Eligibility

 

1-4 unit principal residences

1 unit second homes

1-4 unit investor properties

Co-ops, condos, PUDs, and leaseholds are eligible.

 

 

Maximum LTV/CLTV/HCLTV

(at origination)

 

 

Maximum LTVs ranging from 75- to 90-percent and limited cash-out refinance mortgages with maximum LTVs from 70- to 75-percent.

Qualification

Standard guidelines apply. The balloon mortgage must include a conditional refinancing option that the borrower may exercise when the balloon maturity date is reached.

MI Coverage

Mortgage insurance coverage of 12 percent is required for balloons with LTVs of 80.01-85 percent, 25 percent for balloons with LTVs of 85.01-90 percent, and 30 percent* with LTVs of 90.01-97.00%.   

*35 percent in some cases.

Buy downs

Temporary interest rate buy downs are permitted.

Seasoning

Balloons delivered for whole loan must have a remaining term of at least five years at the time we purchase the mortgage. 

Balloons delivered for MBS must have a remaining term of at least six years at pool issue date.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2006 Conforming Loan Limits

Number of
Units
Maximum original
principal balance
Alaska, Guam, Hawaii,
and U.S. Virgin Islands only
1 $417,000 $625,500
2 $533,850 $800,775
3 $645,300 $967,950
4 $801,950 $1,202,925

 

 

  Correcting Your Credit  
  Credit Advice  
Prepare Your Credit Before Buying A Home
Preparing Your Credit For Life's Changing Needs
Victim Of Identity Theft
Buying Vs. Renting
What If My Application Gets Rejected?
 
Equal Credit Opportunity Act
Turn Your ARM into a Fixed Rate
Fixed Rate Mortgage
Adjustable Rate Mortgages
Down Payment
  Mortgage Programs  
  Home Equity Loans  
How Interest Only Mortgages Work
Balloon Payments  
Other Fees And Closing Costs
High LTV Loans
Bad Credit Mortgage
 
The Good And Bad Aspects
Refinancing Home Equity Loans
Interest Only Mortgages
Necessary Paperwork
Pre-Qualification Vs. Pre-Approval
  Types of Loans  
  Miscellaneous  
Adjustable Vs. Fixed Mortgages
Other Types Of Mortgage Loans
First Time Buyer Programs
Private Mortgage Insurance - PMI
Home Mortgage Refinancing
 
Mortgage Scams
Canceling Your Mortgage
Independent Mortgage Advice
Locking your Interest Rate
Mortgage Closing Costs

Mortgage Glossary4


 

Mortgage Rates Apply Online Credit Basics

Home Equity Basics

Mortgage Basics

Contact Us

About Us

Mortgage News  Helpful Articles

Mortgage Calcultator

 

 

 

 

 

 

 

 

 

 

 

 

 

 

         

OPEN MORTGAGE
10721 Jackson Lane, Frisco TX 75035

PHONE:
214-387-0683EMAIL: info@brown-lending.com

 

"Your reliable Dallas Mortgage Broker and specialist on Texas Mortgage Rates and Home Mortgage Loans."

 

 

Fixed Rate Mortgage