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30-Year Fixed Mortgage with 15-Year Balloon
This fixed-rate mortgage is otherwise known as a 30/15. It is amortized like a 30-year mortgage, but at the end of 15 years, the remaining balance (a.k.a. the balloon) comes due. This means you would need to pay off the loan, sell the home or refinance within 15 years.
Balloon Mortgage Benefits
- Maintain security with a rate that's fixed for 15 years
- Save money because the interest rate is traditionally lower than a 30-year fixed
- Enjoy lower monthly payments than a 30-year fixed mortgage
- Pay on your principle at the same rate as a 30-year fixed mortgage
- Increase your buying power — purchase your dream home
Oh, Sweet 15!
On average homeowners move every seven years. So, balloon mortgages that come due in five or seven years offer less appeal. But, if you fit the norm and don't see yourself in the same house for 15 years, a 15-year balloon can be a very smart loan choice. In fact, it has become one of Columbia's most popular mortgage options.
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