In other markets…
- In markets such as the United Kingdom and Holland, banks have developed hybrid bank products to supplement mortgages. A home buyer can buy a home through a loan at the bank and pay only the interest during the life of the loan--essentially a balloon mortgage. Meanwhile, the borrower takes out a cash-value life policy that is sufficient to cover the price of the home plus a little extra. At the end of the policy's term or in the event of death the loan is paid off.