Don Vandervort, Head Homeboy, has written more than 30 DIY home improvement books, been a segment host on HGTV, served as MSN.com's home improvement expert and written countless magazine articles.
If you are facing foreclosure due to late or missed payments, a lender may offer to lower your monthly payments by refinancing your mortgage, thereby saving your home from foreclosure. You must examine the loan terms carefully.
The lower payments are likely the result of a “balloon payment.” With this type of loan, you repay only the interest until the end of the loan’s term. However, at the end of the term, you must pay the entire amount that you borrowed—the balloon payment. If you can’t produce it, you will face foreclosure and the loss of your home.
