Mortgage Loan

• A mortgage could be used to leverage your home purchase.Hemera Technologies/AbleStock.com/Getty Images
  
  Mortgage loans are used to help consumers finance the costs of a home. Typically, mortgage loans are obtained from a bank, mortgage lender or a licensed mortgage broker. You could inquire about obtaining a mortgage loan against the equity within your home or seek a refinance loan to lower your monthly payment.
  
  

Mortgage Note

• Check the terms of your mortgage loan before signing any documents.Stockbyte/Stockbyte/Getty Images
  
  A mortgage note contains the agreed upon repayment details for a home loan. The issuing lender and the borrower both sign the original mortgage note. Reflected within the mortgage note are the loan terms, the interest rate and the loan amount. Most institutional lenders will record a copy of the mortgage note in the local courthouse for the subject property.
  
  

Balloon Rider

• You can inquire about the terms of a balloon payment.Photodisc/Photodisc/Getty Images
  
  Documents may be added to a mortgage note that reflects additional loan terms, such as an adjustable-rate mortgage addendum or a balloon rider. If your mortgage note has a balloon rider, the terms might require you to pay off your loan in full within a prescribed time period, such as five years from the loan inception date. Typically, a mortgage lender will send a notice to remind you of a balloon payment that is due in 60 days. You can shop home mortgage lenders in your marketplace or inquire about provisions that may enable you to refinance your loan terms with your current lender. Your lender may charge a fee to refinance the amount owed on your balloon payment.
  
  

Tips

• You should store your loan documents in a safe place.Hemera Technologies/Photos.com/Getty Images
  
  A filing cabinet, fireproof safe or other method for securing your mortgage documents could protect your information. Ensure that you pay your mortgage and other bills on time, as your credit report might be reviewed before you obtain a loan to pay off your balloon payment. You may receive a competitively priced fixed-rate mortgage if you have sufficient income and savings to cover several payments after paying off your balloon loan.