972-770-1502
972-770-1502

 Over 16 years of EXPERIENCE

Tom's product knowledge and expertise allow him to create the best mortgage plan to lower costs, save money and accomplish the desired goals for any borrower.

READ MORE ABOUT TOM

 

 Over 16 years of EXPERIENCE

Tom's product knowledge and expertise allow him to create the best mortgage plan to lower costs, save money and accomplish the desired goals for any borrower.

READ MORE ABOUT TOM

 


Tom Gilley

NMLS # 274087

Office: (972) 770-1502
Cell: (972) 342-3922
Fax: (214) 540-9381

Apply Online

rate quote


Tom Gilley

NMLS # 274087

Office: (972) 770-1502
Cell: (972) 342-3922
Fax: (214) 540-9381

Apply Online

rate quote

Balloon Mortgages

Balloon loans are short term mortgages that have some features of a fixed rate mortgage. The loans provide a level payment feature during the term of the loan, but as opposed to the 30 year fixed rate mortgage, balloon loans do not fully amortize over the original term. Balloon loans can have many types of maturities, but most balloons that are first mortgages have a term of 5 to 7 years.

At the end of the loan term there is still a remaining principal loan balance and the mortgage company generally requires that the loan be paid in full, which can be accomplished by refinancing. Many companies have other options such as a conversion feature at the end of the term. For example, the loan may convert to a 30 year fixed loan at the thirty year market rate plus 3/8 of a percentage point. Your conversion can be guaranteed based on certain criteria such as having made your last 24 payments on time. The balloon mortgage program with the conversion option is often called a 7/23 Convertible or 5/25 Convertible.

ehl

6010 W. Spring Creek Pkwy, 
Suite 233/240
Plano, TX 75024
NMLS# is 274087

ehl

6010 W. Spring Creek Pkwy, 
Suite 233/240
Plano, TX 75024
NMLS# is 274087

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