Same Day approval in most cases. Y Balloon A loan with monthly installments of principal and interest that do not fully amortize the loan. The balance of the loan is due in a lump sum at specified date.
Monthly payments are the same for the first five years of the home loan.
At the end of the fifth year, a refinance option makes it possible for a qualified borrower to refinance the remaining balance with a 25-year fixed rate home loan. The interest rate is the same for the first seven years of the home loan. At the end of the seventh year, a refinance option makes it possible for a qualified borrower to refinance the remaining balance with a 23-year fixed rate home loan. A limit on the periodic increase or decrease in the interest rate on an adjustable rate. Closing The consummation of a real estate transaction where title to a property is formally transferred, the note and security instruments are signed, and funds are disbursed.