30 year traditional.....vs. 5 year Balloon?

got a question for those well versed in mortage lending…


$35k financed at 1% over a 30 year, (360 month), term…equates to a monthly mortgage payment of $112.57.

30 year term…probably ain’t gonna work for the seller…

Can something like a 5 year term with balloon at the end…be constructed so that…monthly payment is in same ballpark as the monthly $112.57 of the traditional 30 year?

Thank you.


All of our investment loans are fixed for somewhere between 3-7 yrs with a balloon. These loans are amortized over 10 to 15 yrs. We just re-did a loan last week that was due to reset because we were three years into it. So for this particular loan, it was fixed for three years at 6.5%, but amortized over 12 yrs. So the payment was based off a standard payout at 6.5% over 12 yrs. Last week, we went to the bank to sign new paperwork for the balance of the loan. It’s now fixed again for a few more years and the payment is basically the same as it was before. The interest rate dropped 1/2 of a percent, but the amount saved is really negligible for the size of the loan. The bank charged $125 to re-do the papers.
All of our loans are basically set up the same way, so yes it’s possible to get a shorter term amortized over a longer period so you can keep the payments low. I don’t know that your seller would go for a 30 yr am, but you could always try.


BIG help.