Consumer Mortgage Information
	Apply Now
	Access My Account
	Current Rates
	Services We Offer
	Mortgage Calculators
	Why A Credit Union?
	Locations & Hours
	Mortgage Glossary
	Find A Credit Union
Lender Participation Information
	Credit Union Access
	Contact Us
Equal Housing Lender

Learn about our other valuable services:

	Fixed Rate Mortgages
	Home Improvement Loans
	Refinancing Options

Standard balloon mortgages usually carry a payment amount calculated as if it were a fifteen or thirty year fixed rate loan, but are due to be paid in full in a shorter period of time, usually five or seven years. These loans work well for the family who knows it will be ready to move within the balloon time period. For instance, military or corporate personnel who relocate every few years can often save significant interest costs by utilizing this type of loan since rates are usually well below standard fixed rates.

Some variations of standard balloon loans combine some of the benefits of both fixed rate loans and ARM's. These are often referred to as "Extendable Balloons". Two common types of extendable balloon loans are known as the 5/25 and the 7/23. These are thirty year loans with a twist. The key characteristic is that they start off with the first five or seven year period as a fixed rate loan. After that, a single adjustment is made according to market conditions at that time, and the remaining 25 or 23 years, depending on which product is chosen, is fixed at the adjusted rate. The start rate is typically about a half-percent below fixed rate loans, so they represent a good value for families who don't plan to stay in one house for more than the initial fixed period.