What is a Balloon payment?
Some real estate notes contain a balloon clause that requires the borrower to make a large lump sum payment at a time that is earlier than the time for which the loan is amortized. For example, a loan or contract may be spread over a thirty year period but requires that at the end of the tenth year the entire remaining balance must be paid. For most balloon loans the loan balance due at the balloon date may be refinanced at the prevailing interest rate. Contact our Mortgage Services Department at (800) 879-1009, ext. 8915.
I just received a balloon letter, who do I contact if I have questions?
Please call our mortgage service department at: (800)879-1009 ext. 8915 to discuss your options.