Category: Mortgages

A balloon mortgage is a mortgage that does not fully amortize over the term of the mortgage and instead there is a balance owed at maturity. The final payment at maturity is called a balloon payment. The monthly payments are typically lower and might be interest only. Pros: Low or no monthly payment – While…

A balloon mortgage is a mortgage that is not fully paid off through payments over time. Instead, a balloon mortgage may have payments over time (e.g., monthly or quarterly payments), but it is paid off at the end of its term with a one-time lump sum payment. The final payment at the end of the…

Lenders are generally reluctant to lend to entities, such as limited liability companies (“LLCs”) and corporations because it is more risky than lending to an individual. The primary reason is because the liability of the LLC or corporation is limited to the assets owned by the LLC or corporation. Thus, if the LLC or corporation…

A prepayment penalty is a fee that some lenders charge if you pay off all or part of your mortgage early. Borrowers may think it is bizarre to be penalized for paying off a mortgage early, but lenders include prepayment penalties in mortgages to ensure they make money. If a lender goes to the trouble…

It is important to understand certain provisions of your mortgage to protect yourself. Obvious provisions to review are the interest rate, term, and payment dates, but there are other provisions that you should pay special attention to: Prepayment penalty – A prepayment penalty means that if you pay off the mortgage early, there will be…

If foreclosure is filed against a property in Florida, then the borrower has a right of redemption, which provides borrower an opportunity to pay off the lender before the clerk of court files a certificate of sale or the time specified in the foreclosure judgment, order, or decree. See Florida Statute 45.0315. If the lender…

Once you finish paying off your mortgage, that does not mean you are totally free from the mortgage. The final step is receiving a notice from your lender that the mortgage has been paid in full and a Satisfaction of Mortgage has been recorded. Your lender has an obligation to record a Satisfaction of Mortgage…

You may want to change the terms of your mortgage because you cannot afford your mortgage payments or some other reason. A mortgage modification, also known as a debt rescheduling, can enable you to change the terms of your mortgage. Examples of terms that can be changed with a mortgage modification include: • Payments –…

A refinance is when you pay off your existing mortgage with a new mortgage. Refinancing enables you to change the terms of your mortgage. Some examples of the ways your new mortgage can change the terms of your mortgage include: • Lower interest rate – Refinancing is the most common strategy for someone who wants…