Ellis III, an FBI accountant testified the fraudulently obtained money was used in part to pay interest on a balloon mortgage
payment on the Fairfax property and to pay for improvements on the Delaware property.
He says he'll lend us the money to buy at a low interest rate and hold a balloon mortgage
instead of us going for a bank loan.
"So if there is a need for certain balloon mortgage
products in certain markets, whether portfolio or otherwise, we don't think the ability to offer them should be limited by charter type."
A balloon mortgage
starts with a low interest rate and after a set period of time, the rate balloons.
: A mortgage with periodic installments of principal and interest that do not fully amortize the loan.
"Despite Chabon's dazzling brilliance as a stylist, huge sections of Telegraph Avenue read like they've been written by a man being paid by the word who has a balloon mortgage
payments will come due over the next several months, and the club has been unable to refinance, Doyle said.
Betsy Johnson, D-Scappoose, to secure a $2.5-million disbursement from the Legislature to pay off a $2.5 million balloon mortgage
payment on the society's Southeast Portland warehouse.
The balloon mortgage
loan is an installment note whose amortization is longer than its term.
Rates were steep, though; a 15-year balloon mortgage
(relatively reasonable monthly payments but a large amount due at maturity) for $84,000 had a rate of 12.25%, and a seven-year adjustable rate mortgage for $452,000 had a 7.2% rate.
So what if that balloon mortgage
payment was just at the edge of what they could afford, they now had a house with more rooms than a bed-and-breakfast.
The conclusion of their paper is that mortgage contracts that tend to have low payments early on, such as a balloon mortgage
, are most successful in relaxing the borrowing constraint.