Quite often in real estate, when it comes to finding the best mortgages, the purchaser takes out what is called a ‘balloon loan’ in order to quickly purchase a piece of property with a minimal amount of money being paid out initially. There are some obvious advantages to balloon loans, but there are some drawbacks as well. One of the best advantages is the fact that interest rates tend to be low so that monthly payments are minimal.
The way a balloon loan works is that it is a long term loan often for 3 or 5 years in which nothing is paid toward the principal. At the time of maturity the entire loan is due and payable in full. Whi Read more…
WSJs Robin Sidel has a piece about the effect of the Durbin Amendment on the debit card interchange fees charged by credit unions and small banks. Or rather, the lack of a direct effect, as financial institutions with assets of less than $10 billion were unaffected by the regulation.
For the seventh consecutive quarter, TransUnion’s Credit Risk Index fell, indicating that consumers are eliminating their debts and defaulting on payments in fewer numbers. The index is down from 121.22 to 120.62, a 4.9 percent drop since last year.
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