7/23 Balloon Mortgage
30 Year Amortization
Rate is fixed for seven years then adjusts one time based on the 60 day FNMA bond rate plus .625%.
| Loan Range: | $100,000 to $417,000 | ||
| Minimum LTV: | Purchase: 90% | Refinance: 90% | Cash-Out: Varies |
| Program Strengths: | Fixed rate security for seven years is usually more than most borrowers need, at a rate better than the 30 year fixed. | ||
| Program Drawbacks: | The adjustment after the seventh year usually yields a high rate. | ||
| Recommendations: | A good mix of security and low rate for those planning on being in a loan for seven years or less. | ||
