balloon mortgage
Big final payment
A balloon mortgage is a loan where regular payments cover only part of the principal, leaving a large lump sum due at the end of the term.
The final payment "balloons" compared to the earlier ones.
Borrowers often refinance before that date or sell the property: We'll need to refinance before the balloon payment comes due.
- final paymentLast sum owed
- paymentFulfilling a financial obligation
- lump sumEntire amount at once
- refinanceObtain new loan terms
- dueOwed or expected
principal · interest · interest rate · amortization · short-term loan · housing · housing market · loan · maturity · risk · burst · lending · real estate · homeowner · home equity · debt · equity · foreclosure
- mortgageshome loan, home loans, down payment, refinancing, refinance
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