5, 7, & 10 Year Balloon Mortgage
A balloon mortgage is a short-term loan that offers lower monthly payments because it’s not fully paid off at maturity. At the end of the loan term, your monthly payment “balloons” to include payment of the outstanding principal.
ICCU offers balloon mortgages with terms of 5, 7, and 10 years, with payments that are amortized over 30 years. In other words, the amount of your monthly payment is based on a schedule as if you would be making continuous monthly payments for 30 years to pay off the loan. But, because the term of the loan is so much shorter, at the end of the term you owe the outstanding balance. This amount is paid off through refinancing the loan or selling your home.
A balloon mortgage may be the perfect financing option for you, if you:
- Plan to live in a home for 5, 7, and 10 years or less
- Want to lower your existing mortgage payment
- Have less than 10 years to payoff your mortgage
ICCU NMLS# 400086