Planning on living in your house fewer than 7 years? A balloon mortgage might make sense for you. It will allow you to pay lower payments for a certain amount of time and one large payment for the balance of the loan after a specified number of years.

Benefits of Balloon Mortgages:

• Balloon mortgages combine greater affordability with predictable monthly payments
• Great alternative to a variable rate or interest-only loan
• Rates typically below 30-year conforming fixed rates