Balloon Mortgage

A balloon mortgage is one in which monthly payments are made for a specified period of time, with the balance of the loan paid in full at the end of the loan term. Like an ARM, interest rates on a balloon mortgage are typically lower than on a fixed rate mortgage.

A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

A mortgage that has level monthly payments that are insufficient to fully amortize the principal and interest within the term of the loan. With a balloon mortgage, a lump sum payment ("Balloon Payment") is due at maturity.

A short-term fixed-rate loan which features small payments for a certain period of time and one large payment for the remaining amount of the principal (balloon payment), paid at the time of the final installment.

a mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.

A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.

A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date, usually at the end of the term.

A real estate loan in which some portion of the debt will remain unpaid at the end of the term of the loan. A balloon will usually result in a single large payment due when the loan ends.

a mortgage that does not fully amortize by the end of the loan term. Periodic payments may be for principal and interest, or for interest only. At maturity, the unpaid principal is due in a lump sum.

A short-term, fixed-rate loan with low payments for a set number of years and a large balloon payment of the remainder of the principal due at the end of the term.

A loan that has regular monthly payments which amortize over a stated term but call for a final lump sum (balloon payment) at the end of a specified term, or maturity date, such as 10 years.

A mortgage that has a substantial amount of the principal due at the maturity of the note.

A mortgage for a fixed term shorter than necessary to fully repay the debt. As a result, the remaining amount of principal is due at the maturity of the loan.

A mortgage whose amortization schedule will not extinguish the debt by the end of the mortgage term, leaving a large payment (called balloon payment) of the remaining principal balance to be paid at that time.

Behaves like a fixed-rate mortgage for a set number of years (usually five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.

A type of mortgage loan that is exactly like a traditional fixed rate mortgage except that it becomes 100% due after a specified amount of time has elapsed (usually five or seven years). When the loan matures, you must pay the loan off in cash (Balloon Payment) or refinance. The advantage of this type of loan is that the initial rate is usually lower than a normal fixed rate loan. ...

A mortgage that requires that a final lump sum payment be paid at the end of the loan term.

A balloon mortgage offers lower interest rates for shorter-term financing, usually five, seven or ten years. At the end of this term, the borrower requires refinancing or must pay off the outstanding balance in a lump-sum (balloon) payment.

Type of mortgage home loan structured whereby the borrower makes consistently, regular payments up until the end of the term when a sizably, large final payment (balloon payment) comes due in conjunction with the loan's maturity date.

A mortgage loan with periodic payments that are insufficient to fully amortize the face amount of the note prior to maturity, so that the principal sum, known as the "balloon" is due at maturity.

A large payment on a mortgage due at the end of a certain time period.

A short term loan, usually 5 to 7 years, that features a fixed interest rate, and a final large balloon payment for balance of the mortgage.

(mortgage term) Short-term loan, usually at a fixed interest rate, paid back in equal monthly payments, with a large, final “balloon” payment for the balance.

A mortgage loan with a final payment that is larger than the required periodic payments because the loan amount was not full amortized.

A mortgage that has a fixed rate, level monthly payments that amortizes over a certain term, with the unpaid balance due as a lump sum on the balloon maturity date.