Balloon Note In Mortgage In Georgia
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Multi-State
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US-00425BG
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A Balloon Note is a Promissory Note that has one large payment (the balloon payment) that is due upon maturity. A balloon note will often have the advantage of a very low interest rate, thus requiring little capital outlay during the life of the loan. The major problem with such a loan is that the borrower needs to be self-disciplined in preparing for the large balloon payment due when the loan matures. Of course refinancing the note upon maturity is always a possibility.
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A balloon mortgage allows you to enjoy low monthly payments for several years — with a big catch. A balloon mortgage is one of many loan types you can get to buy a home.Balloon loans are short-term loans that provide the benefit of low monthly payments. A balloon note is a type of mortgage which does not fully amortize over the life the loan. Thus, there is a balance at the end of the balloon note. A balloon loan operates much like a standard mortgage payment.