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Frequently Asked Questions

Balloon Loans

What is a balloon mortgage or a home mortgage balloon loan?

Your home loan was originated with a balloon feature. This means that you only make payments until your loan reaches its maturity date, which is typically well before the loan reaches a zero balance. When your loan reaches the balloon maturity date, you’ll be required to pay the remaining balance of your mortgage in a one-time, lump-sum payment, also known as a balloon payment.

How far in advance should I prepare for the end of my loan term?

You should starting planning at least 2 years before the maturity date. Some of the options for paying off the balloon take longer than others to complete, and you’ll want to leave yourself enough time to get the paperwork done.

Can I get an extension on my current contract or maturity date?

No — extensions aren’t available at this time. However, if you’d like to refinance your loan or if you’re experiencing a financial hardship, we may be able to help. For more information, call 1-877-898-4167.
Loan and payment options

How do I refinance my loan?

Call 1-877-898-4167 to talk with a home loan specialist and to start an application. You can also apply online for a new home equity account or a new first mortgage.

How can I pay my loan balance in full now?

For a payoff quote, call us at 1-877-898-4167.

What are some options for paying off my loan?

You may be able to refinance to a new home equity line of credit and gain access to available home equity with a 10-year draw period to use when you need it. Our home equity lines of credit also offer fixed-rate advance options. You may apply to refinance a new first mortgage with Wells Fargo.

Note:

  • Refinancing may not be right for your situation. Talk with a home loan specialist to learn more.
  • Refinancing to a new first mortgage that includes a home equity line of credit may carry additional costs.
  • Different options may help you lower your interest rate, lower your monthly payment, or pay off your outstanding balance.
  • If you’re experiencing financial challenges, you may qualify for a modification with new terms and a possible interest rate reduction. Talk with a home loan specialist at 1-877-898-4167 for more information.
Miscellaneous

What if I don’t have any equity in my home?

You may have options even if you have little or no equity in the home. To learn more, call a home loan specialist at 1-877-898-4167.

How were my home loan payments calculated and why do I still have a lump-sum payment due?

There are different reasons you may have a lump-sum payment due:

  • If your loan was originally established with a balloon payment, your loan payments were not calculated to pay your account in full by the time your loan’s maturity date arrives.  This types of payment is known as “partially amortized payments.” When your loan reaches the final maturity date with partially amortized payments, you will not have paid off your entire outstanding principal balance due. That’s why a lump-sum balloon payment is due on or before the maturity date.
  • Some contracts calculate interest based on when the payment was received, and variations in when you made your payments may impact the amount that is due at the end.  Additionally, other balances such as taxes and insurance, may have been paid on your behalf and any of these amounts outstanding are also due when the full balance is due.
  • If your loan was modified, the modification may have deferred or set aside a portion of the balance to make your monthly payments affordable. The set aside amount is due when the full balance is due.

What if I can't make the scheduled balloon payment or refinance my outstanding balance?

You may have other options, but it’s important to reach out to us and discuss your situation as soon as possible so that you don’t default on your loan, which could negatively affect your credit rating or even put your home at risk.

Call us at 1-877-898-4167 as soon as you realize you’re having problems and let us help you understand your options.

Apply for a new mortgage

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We’re here to help online, over the phone, or in person if you’re ready to apply for a new mortgage. Learn more

Apply for a home equity line of credit

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We can help you decide if a home equity line of credit is right for you.  Learn more