So I'm looking into purchasing some acreage up in New Mexico. I found a company that is willing to work a raw land mortgage. Their standard mortgage for this is "5 year Balloon Note (fixed rate for 5 years, balloon payment due upon maturity) at 5.75% (approx. APR 6.434%) amortized for 15 or 20 years."
I'm not very educated in this department. Can some explain this to me?
Also "Maximum Loan to Value 70%, 30% down payment required". Does this mean if I get appraised for more than my purchase price I can take the difference from the down payment or is it still 30% regardless? For example land value is $100,000 and I purchase for $90,000. Will I still need $30,000 down payment?
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