Generally speaking balloon mortgage interest rates are better than rates for Adjustable Rate Mortgages (ARMs). In a balloon loan you have fixed monthly payments for a term of 3, 5, or 7 years. The monthly payments are based upon a 30 year fully amortizing schedule
When available, a stated income-stated asset (SISA) loan was good for those that had excellent credit and showed the history to be able to repay their debts without regard to the actual amount of income they had. Typically these types of loans were for self employed individuals that used the benefit of the tax laws (see your tax professional) to write off expenses on paper to lower their taxable income.
