By info@shareamg.com 
Balloon Loans
Discover the advantages of fixed-rate mortgages, offering predictable payments and protection from interest rate hikes
Balloon loans amortize like regular 30-year fixed mortgages, but the principal balance becomes due immediately at the end of a set period (usually 5, 7, or 10 years). Balloon mortgages typically offer lower rates than their nonballoon equivalents, but the borrower must have the money to pay off the loan in full when it comes due.Balloon loans are best for borrowers who:
- Are certain they will sell their home within 5, 7, or 10 years (before the big payment is due).
- Are highly confident that they’ll have the cash required to pay the loan off in full or have
Negative Amortization Loans
Negative amortization loans have monthly payments that intentionally don’t cover the interest the borrower should pay each month. The interest you don’t spend each month then gets added to the principal. Over time, you can end up owing considerably more on a loan than the property securing the loan is worth. Lenders may try to entice you to buy a home you can’t afford with a negative amortization loan, but you should never take on this type of loan.
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