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Conventional 7 Year Balloon

Loan Term: 7 years
Max Loan Amount: $417,000

Minimum Down:
5% of purchase price
Available for: Owner-occupied primary residence, 1-4 unit properties (you must occupy one of the units)


Loan Features:

Fixed interest rate and monthly payments
Your monthly principal and interest payment will never change until your balloon payment is due in 7 years. Get the peace of mind that you are protected from any future increases in interest rates.

Lower initial interest rate
Generally, balloon loans have a lower interest rate than most fixed rate loans. This low interest rate can help you qualify for a larger loan amount, or you can save money with lower interest payments.

Various rate lock options
We offer a variety of rate lock options to help you achieve the rate you desire. Your personal loan officer can help you choose your most effective rate lock option after you apply for your mortgage.

Consider choosing this loan if:


You want to save money by taking advantage of the low interest rate that a balloon loan provides.


You plan to move or payoff your mortgage within the next 7 years.


You expect to come into a large sum of money by the end of the loan term.

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Other
Balloon Payment Options::
Conventional 7 Year Balloon

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Learn more (key terms and concepts)


Conventional Conforming Loans
Conventional Conforming Loans are loans that conform to national guidelines established by the Federal National Mortgage Association (FNMA or Fannie Mae) or the Federal Home Loan Mortgage Corporation (FHLMC or Freddie Mac). These guidelines insure the security of your mortgage and therefore the security of your home.

Maximum Loan Amount
Loan Amounts for conventional loans can vary in size, but can not go over $417,000 for a single-family home. The rest of the loan limits are as follows:


Adjustable Rate Loans
 Adjustable Rate conventional loans are mortgages with an interest rate that adjusts periodically. Usually, the rate will adjust once a year but the time between adjustments can range from once a month to once a year. These adjustments will affect the amount of your monthly payment if rates increase or decrease over time. Some ARM loan have a fixed rate for a given term, usually 3, 5, 7, or 10 years, then the rate adjusts periodically for the remaining life of the loan. In general, you might choose to select an adjustable rate loan if you thought interest rates were going down in the future, or if mortgage rates are high and you expect to refinance in a few years. Some other advantages of most ARM loans are lower initial rates and flexible qualifying.
Jumbo Loans
 Jumbo Loans are conventional loans that are larger than conforming loan limits (any loan over $417,000 for a single-family home).



Term Options
 The Loan Term is the number of years it will take to pay the loan back in full. Most commonly, mortgage terms range from 10 to 30 years. For our purposes, we will compare a 15 and a 30 year loan:

30 year loan
15 year loan
Extends principal payments
over 30 yrs.
(lowest payment available)

pay more total interest
when you pay over 30 years


 Extends principal payments
over 15 yrs.
(higher monthly payment)

Pay less total interest
by paying over 15 years

Build equity faster

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All rights reserved. Revised: October 16, 2000.