A mortgage in which a large portion of the borrowed principal is repaid in a single payment at the end of the loan period.
Example sentencesExamples
Unlike many other mortgages, balloon mortgages do not pay themselves off at the end of the loan term.
The advantage of a balloon mortgage is that you get the stable payment of a fixed-rate loan, but have the flexibility of a short-term loan.
It might help to compare balloon mortgage financing side by side with standard fixed rate mortgage financing.
Many borrowers of balloon mortgages refinance their loan before the balloon payment is due.
Choose a balloon mortgage loan for substantially lower initial rates, or if your credit limits the other types of mortgage that you can apply of qualify for.
At the time of this writing, I am not aware that any lenders are offering balloon mortgages in jumbo loan amounts.
The most popular balloon mortgages have a fixed rate period of either five or seven years with a thirty-year amortization and no pre-payment penalty.
Most balloon mortgages are for 3 to 7 years.
The 7-year balloon mortgage is for those who relocate regularly or who plan to stay in their home for less than seven years.
With a 5 year balloon mortgage, the term is 5 years, but the payments will be calculated on a 30 year term.
At the due date, you can either refinance the balloon mortgage or pay it off in cash.
A balloon mortgage is a non-amortizing loan and does not pay itself off at the end of the loan term.
The most common balloon mortgage terms are 5 years and 7 years.
The balloon mortgage is a fixed-rate mortgage with a shorter term than traditional mortgages have.
The 5 year balloon mortgage will have the same interest rate and payment for the first 5 years of the mortgage.
Some balloon mortgages feature a conversion option at the end of the initial period.
A balloon mortgage is one of the many non-traditional mortgages available to real estate buyers.
The lender may also reserve the option to call the loan due with 30 days notice at that time, making this loan similar to a balloon mortgage in some cases.
Qualifications for a balloon mortgage vary depending on the lender you choose, but most require at least a 20% down payment.
A balloon mortgage has a lower rate and lower monthly payments than a fixed-rate mortgage.
Definition of balloon mortgage in US English:
balloon mortgage
noun
A mortgage in which a large portion of the borrowed principal is repaid in a single payment at the end of the loan period.
Example sentencesExamples
The advantage of a balloon mortgage is that you get the stable payment of a fixed-rate loan, but have the flexibility of a short-term loan.
At the due date, you can either refinance the balloon mortgage or pay it off in cash.
With a 5 year balloon mortgage, the term is 5 years, but the payments will be calculated on a 30 year term.
A balloon mortgage is a non-amortizing loan and does not pay itself off at the end of the loan term.
A balloon mortgage is one of the many non-traditional mortgages available to real estate buyers.
The lender may also reserve the option to call the loan due with 30 days notice at that time, making this loan similar to a balloon mortgage in some cases.
Some balloon mortgages feature a conversion option at the end of the initial period.
Many borrowers of balloon mortgages refinance their loan before the balloon payment is due.
It might help to compare balloon mortgage financing side by side with standard fixed rate mortgage financing.
The 7-year balloon mortgage is for those who relocate regularly or who plan to stay in their home for less than seven years.
Most balloon mortgages are for 3 to 7 years.
Choose a balloon mortgage loan for substantially lower initial rates, or if your credit limits the other types of mortgage that you can apply of qualify for.
Qualifications for a balloon mortgage vary depending on the lender you choose, but most require at least a 20% down payment.
Unlike many other mortgages, balloon mortgages do not pay themselves off at the end of the loan term.
At the time of this writing, I am not aware that any lenders are offering balloon mortgages in jumbo loan amounts.
The balloon mortgage is a fixed-rate mortgage with a shorter term than traditional mortgages have.
The most common balloon mortgage terms are 5 years and 7 years.
The 5 year balloon mortgage will have the same interest rate and payment for the first 5 years of the mortgage.
A balloon mortgage has a lower rate and lower monthly payments than a fixed-rate mortgage.
The most popular balloon mortgages have a fixed rate period of either five or seven years with a thirty-year amortization and no pre-payment penalty.