Naples Balloon mortgage basically means at the end of the fixed period or maturity their will be a balance on the note that is due immediately.The last payment is called a final payment and normally is substantially higher than your loan payments during the fixed period. I really never understood why borrowers would select a Naples Balloon mortgage. It seems to only put you in a position to refinance or maybe reset if you have worked out another more favorable term thereafter.
This could be a valid reason to do a balloon payment if the reset terms and conditions are more favorable than the initial program. A majority of lenders do not use balloon payments because it puts both the borrower and lender in a precarious position if the loan does not reset.
If you are considering a balloon program, my recommendation is to make sure their is a reset clause and the terms are favorable and do not cause you to refinance and avoid costly reset conversion fees.
Good luck and hope this helps!
http://www.coremortgagefinancial.com/
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