A balloon payment is the final and often significantly large payment on a loan, typically required after a series of smaller installment payments. It clears the remaining debt owed on the loan.
A Growing-Equity Mortgage (GEM) is a type of mortgage loan where the payment increases by a specific amount each year, with the extra payment amount applied toward reducing the principal balance, thereby shortening the loan's maturity period compared to a traditional fixed-payment mortgage.
Mortgage life insurance is a type of financial product that ensures mortgage repayment in the event of the borrower's death or disability, safeguarding the homeowner's family and the lender.
An open mortgage is a mortgage that has matured or is past its due date and hence remains open to foreclosure or repayment without any prepayment penaltiesat any time. It allows for flexibility for both the borrower and the lender.
The Remaining Term refers to the amount of time left before a loan or mortgage reaches its maturity date. It represents the period remaining for the borrower to fulfill the debt obligation according to the contractual agreement.
