What are the disadvantages of a balloon mortgage?

Potential Downsides of Balloon Mortgages for Homebuyers Foreclosure can result in the loss of the home, emotional distress, and impact the borrower's credit negatively, generally for seven years. The first balloon mortgage payments primarily cover the interest rather than the principal.

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Chattel Mortgage on Mobile Home

Chattel Mortgage Form With Balloon In San Jose

Category:

Loans and Lending - Chattel Mortgages

State:

Multi-State

City:

San Jose

Control #:

US-0007BG

Format:

Instant download

Description

A chattel mortgage is a term used to describe a loan arrangement in which an item of movable personal property is used as security for the loan.

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FAQ

The traditional mortgage is only for stationary property. It's suited for long-term real estate investments. Chattel loans are for property that can be easily moved. They're also an option for borrowers who want their loans approved faster and with shorter repayment times.

The Bottom Line. If you're looking to buy a modular home or movable piece of equipment, taking out a chattel mortgage could be right for you. These loans come with shorter terms and much lower processing fees. However, the interest rate will be higher than what you'd receive on a conventional mortgage.

The purpose of a chattel mortgage is to secure financing for moveable property or chattel. Chattel mortgages can be used to finance vehicles, mobile homes, and even heavy equipment like tractors.

Potential Downsides of Balloon Mortgages for Homebuyers Foreclosure can result in the loss of the home, emotional distress, and impact the borrower's credit negatively, generally for seven years. The first balloon mortgage payments primarily cover the interest rather than the principal.

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We can help you understand the documents you sign in your real estate closing. Applicants simply fill out our simple application form and provide the necessary documents requested therein.This is a risky but potentially lucrative move, and best done with the help of a knowledgeable real estate lawyer. We recommend that you consult your accountant or tax advisor to find out more about whether you can benefit from this product. Where Can Borrowers Get a Chattel Loan? The focus of this Guide is to provide helpful information when completing the Loan Estimate and Closing.

Chattel Mortgage Form With Balloon In San Jose

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