2nd mortgage GFE 15 yr. fixed with balloon payment after 15 yrs. But it also says HELOC. Isn’t that like an?
by Mortgage Rates on Monday, September 27th, 2010 | 4 Comments
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Stay away from any type of balloon payment. It may just baloon way out of control.
A fixed balloon, means that it’s fixed and then you have to refinance it after 15 years based on the rates at that time. Most HELOC’s are adjustable but you need to go to your broker/mortgage company to see the exacts about your situation.
i hav no idea wat ur tawkn abt honeyboo. rephrase ur question n a lower level ov sophistication
These are very typical terms for a home equity line of credit. Every loan needs to have a maturity date, so they use 15 years in this case. HELOCs differ from regular amortizing mortgages by allowing you to draw funds at any time during the loan term rather than advancing 100% of funds at close and then paying down principal every month. You could technically advance a HELOC to its max the day before your loan is due, so the “balloon” that is mentioned is referring to the fact that you may have funds outstanding at the maturity date.