Posted by SarahBeth_CA on 8/6/05 12:09pm
Msg #57368

May be a crap shoot...

Today I have signing with my first Ballon Payment Rider. Now I don't usually look at the numbers but when it's a doc I haven't seen before I do look it over well so that I have a firm understanding of the doc. Every borrower and every loan is different so we will see what happens here. This loan is for x amount, payments for 12 months at y amount, at 13th month balloon payment of z (which is a very high 5-digit figure). Hopefully the borrower is aware of this already. Thankfully this ss pays whether or not borrower signs. So we will see what happens.

Reply by Kimberly-IN on 8/6/05 12:26pm
Msg #57369

I've seen plenty of one year arms. It all depends on the BO's long term financial goals. (or they are getting the shaft, one of the two)

Reply by Allison B/SCal on 8/7/05 8:40am
Msg #57453

SaraBeth - I've done 2 ballons this month alone

I was surprised too, but he rate these borrowers received was killer and they both knew what they were getting into and expected the balloon (apparently they had a "plan" so it was completely fine with them). It was hard not keep a poker face since the due date was quick and so much! Good luck