Hi can someone please explain what a balloon payment is .
& how it works .thank you .
danny. [confused2]
D Hattersley
Hi Danny,
The ballon payments system I am most familiar with typically applies to car leases.
Under these circumstance you are required to make an agreed number of payments for an agreed duration of time and when the term of the lease agreement expires there is a lump sum or ballon payment required to clear the debt.
For example I am currently in a novated salary packed car lease which requires me to make 36 monthly lease payments (equating to about 60% of initial debt) and a final ballon payment of 40%.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
ok so then it would be a bad way to go for a house.as youd need the %40 at the end in a lump sum .?
thank you for your time .
dannyD Hattersley
Danny
Not at all. The way we operate our Shared Ownership scheme in Qld works very similarly to a Motor Vehicle Lease.
The balloon at the end enables the repayments to be lower in the early years and we have a built in option whereby the client can renogotiate at the end of the LTO period to reschedule the balance.[specool]
Cheers Richard
richard at fhog.com.au
http://www.fhog.com.auThere is no such thing as a problem.
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can you please tell me more about the shared ownership.
who can ,what can , how can .
do many people do this .
thank you .
dannyD Hattersley
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