Balloon Mortgages

Deciding on the right mortgage for you and your family is one of the most important financial decisions you will make in your lifetime. There are many mortgage options, and you need to be aware of your choices so that you can avoid difficult financial situations in the future. One uncommon mortgage type is the “balloon mortgage,” also known as a short term mortgage. These mortgages resemble fixed-rate mortgages but unlike typical 30-year mortgages, a balloon mortgage has a large balance that is due on the loan’s maturation date.

If you have a balloon mortgage and are stuck with a large lump sum to pay on your loan’s maturation date, you may not be able to make the payment if you experience financial difficulty. In this case, your home may be in danger of being foreclosed upon. If you are fighting to avoid foreclosure, contact the Boca Raton foreclosure defense lawyers of Eric N. Klein & Associates, P.A., today at 561-353-2800 to speak with a legal representative about your options.

What is a Balloon Mortgage?

Most balloon mortgages are either for seven or fifteen years. If you cannot make the balloon payment at the end of the mortgage, you do have options. For example, you may be able to restructure the mortgage to avoid foreclosure.

Most people get balloon mortgages when they are not expecting to own or live in the property for an extended amount of time. If you plan on moving in a few years, a balloon mortgage can be a good option so that you don’t get tied down to a 30-year mortgage.

Contact Us

Unfortunately, individuals who fall on hard financial times often have trouble making payments on a balloon mortgage. If you are facing foreclosure and want to know what you can do to save your home, contact the Boca Raton foreclosure defense lawyers of Eric N. Klein & Associates, P.A., at 561-353-2800 and schedule an initial consultation.