5 Year Balloon
If you are anticipating trading-up or moving within a few years, you may find a balloon loan to your advantage. If you plan to keep the home you are buying for at least three years, but not more than five years, a balloon loan offers two major advantages: (1) you can enjoy a lower fixed monthly payment; and (2) if your plans change, you have the option of refinancing upon maturity of the balloon loan.
