Had a client today shop me against their local credit union for a purchase loan. The credit union threw a slightly lower rate at them but it turns out it was a balloon loan and not a straight fixed mortgage. First time ive seen that come up in the US for highly qualified borrowers.

Balloon loans should only be used by buyers that a) have the cash to pay the entire amt due at the end of the mortgage ( not anticipating having it ) and b) believe no refinance opportunities will come up in the future. Otherwise the risk is insane and not worth it. If someone is pitching a balloon to you and telling you 'dont worry you can refi before its due' ... Run! 🏃‍♂️