Q: I'm owner financing a home that i own outright in my trust. Can I request a balloon payment after 10 of the 30 year term
A: Yes, it is not uncommon to amortize a loan over 20 or 30 years but provide for a balloon payment after 3-10 years. This allows a buyer to purchase and, if needed, provides time to build equity and improve his or her credit so it may be possible to refinance conventionally when the balloon payment comes due.
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