A balloon mortgage is a mortgage that has a payment calculated over a long period like 30 years. However, the mortgage balance is due and payable before 30 years are up. For example, a 15 year balloon mortgage would mean the payment is calculated or amortized over 30 years but at the 15 year mark, [...]

An adjustable rate mortgage is one where the interest rate can change periodically. Many people do not think they have an ARM because of the initial fixed rate portion of the mortgage. But if the rate can ever change..even once..it’s an adjustable rate mortgage. Adjustable Rate Mortgage Definition The 5 1 adjustable rate mortgage was [...]

Currently (April of 2008), the 30 year fixed par rate, the rate a good shopper could get, is around 5.75%. This is a good rate to “fix in” for the long haul. Given our current administration “likes” the dollar at all-time lows, sooner rather than later, rates will have to rise. Getting caught in an [...]