Where to learn about refinance
At the end of the balloon mortgage's term, the full sum of the mortgage is due, usually as a lump sum. * Variable rate: Variable interest rates rise and fall with the market, usually closely tracking an external interest rate. Mortgage loans with variable rates usually have monthly payments that are the external interest rate plus a set number of interest points. Variable rate loans are good for periods in which interest rates are high, but are expected to drop. Many variable rate loans have a grace period during which the homeowner can convert from a variable rate to a fixed rate loan in order to take permanent advantage of a dip in interest rates.