jsimms
07-30-2008, 02:03 PM
Hi Forum Users!
A client of mine asked me if there was such a thing as an adjustable biweekly loan that featured a balloon payment. In my own experience, I've never seen one (I've seen bi-weekly ARMs, and biweekly w/ Balloons, but never all three).
On a conceptual basis, I don't know how you could calculate the balloon payment each adjustment period. The Balloon would rise or fall depending on the payment amount which would adjust each adjustment period. Further, the term of the loan would change based on the different interest rates / loan balances being calculated during each adjustment period.
Does the community have any thoughts on this or is the Bi-weekly ARM Balloon just another version of a Mortgage Bigfoot (i.e urban legend)? :)
A client of mine asked me if there was such a thing as an adjustable biweekly loan that featured a balloon payment. In my own experience, I've never seen one (I've seen bi-weekly ARMs, and biweekly w/ Balloons, but never all three).
On a conceptual basis, I don't know how you could calculate the balloon payment each adjustment period. The Balloon would rise or fall depending on the payment amount which would adjust each adjustment period. Further, the term of the loan would change based on the different interest rates / loan balances being calculated during each adjustment period.
Does the community have any thoughts on this or is the Bi-weekly ARM Balloon just another version of a Mortgage Bigfoot (i.e urban legend)? :)