Balloon Mortgages: The Mortgage for Investment Properties
Considering an Investment Property?
Investment property can be used to provide income or supplement it. Whether you're considering buying a property to lease out, renovate and relase or simply to hold for a few years, a balloon mortgages might be just the right option for you.
A Balloon Mortgage offers a fixed rate for a shorter period of time than a conventional mortgage. It typically has a smaller monthly payment with one large payment for the remaining balance at the end of the term.
The lower initial payments of a 10 year balloon mortgage mean you'll have additional cash on hand (compared to a traditional mortgage) that you can use to invest in the property or for other purposes.
If you decide to keep the property at the end of the 10 year payment period, you may have the option to refinance the balloon payment to a longer term loan. You will have to qualify for the new loan at that time.