Quote:
Originally Posted by PsychTau
A $450,000 balloon payment? Holy eff.
I know some mortgages can be written with a balloon payment to make the initial monthly payments lower (I guess? Something went wrong here) but I would think you would enter into that with the full knowledge that you would immediately start figuring out a way to refinance or something to avoid that balloon payment.
Or something. GEEZ!
PsychTau
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This is how a lot of people have ended up in foreclosure. They purchased on a crazy loan with a balloon payment or that could end up with exorbitant mortgage rates, figuring that they would re-finance when it got close to the time that the balloon payment was due or the rate would go up. But then property values dropped like a lead balloon and they can't refinance because the appraisals won't come in high enough to do so.
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