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Simple English definitions for legal terms

balloon-payment mortgage

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A quick definition of balloon-payment mortgage:

A balloon-payment mortgage is a type of loan where the borrower makes regular payments for a set time and then has to pay a large lump sum at the end. It's like blowing up a balloon with small breaths and then having to blow it up the rest of the way with one big breath. This type of mortgage can be risky because the borrower needs to have enough money to make the final payment.

A more thorough explanation:

A balloon-payment mortgage is a type of mortgage that requires the borrower to make periodic payments for a specified time and a lump-sum payment of the outstanding balance at maturity. This means that the borrower will have to make smaller payments during the term of the mortgage, but will have to pay a large amount at the end of the term.

For example, let's say a borrower takes out a 30-year balloon-payment mortgage for $200,000 with an interest rate of 5%. The borrower will make monthly payments of $1,073 for 29 years, but at the end of the 30th year, they will have to pay a lump sum of $183,941 to pay off the remaining balance.

This type of mortgage can be risky for borrowers because they may not have the funds to make the large payment at the end of the term. However, it can be beneficial for those who plan to sell the property or refinance before the balloon payment is due.

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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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