All Forum Posts by: Randall Hoeber

Thanks Scott for the response.  Based on your knowledge of the product, am I locked into that five year term or is it possible to refinance sooner?  My overall plan for the property is to hold and rent.  My intention would be to refinance within 2 to 3 years and purchase another rental property.  Is that possible with this particular product?

I am currently in the process of purchasing a real estate property for rent and in the loan product is as follows - "Year 5 Balloon Payment, Fixed Rate."  This loan is amortized over 30 years.  My research indicates that at the 5 year term the lender could demand a lump sum payment of some sort.  Perhaps I misinterpreted the information, but if you can educate me on this that would be great.

Can someone share with me their experiences pertaining to balloon loans/terms?  This is a new term to me and while I did some research on the subject, I would like some feedback on the pros and cons based off of personal experiences.

Thanks, Randall