Fear The Balloon Loan Reaper

Only in America could you have a beast like the balloon loan. This beauty is just this side of unconscionable! Why? A balloon loan is one that offers you a ton of money and low initial payments for a period of five to seven years. After that, the monthly payments go up, right? Nope. The entire loan amount comes due all at once! Avoid balloon loans at all costs unless you are absolutely sure you can turn around and resell the home in a short period of time. You do not want to get upside down like so many people are these days. If you do, foreclosure will be your next destination.