mortgage

What is a balloon mortgage?

 

What is a balloon mortgage?

The Bankrate.com financial term of the day is: "Balloon Mortgage."

A balloon mortgage gets its name from the pumped-up payment that the borrower must make at the end of the loan term. It's a short-term mortgage, maybe lasting for seven or 10 years, with regular payments that might be interest-only. When the loan's time is up, the balance owed on the property is due in a fat lump sum.

A home loan that doesn't last long and has an inflated final payment is called a balloon mortgage.

To shop for a great mortgage rate, visit the mortgage rate tables at Bankrate.com.

advertisement

Show Bankrate's community sharing policy
          Connect with us
advertisement
CAR & MONEY NEWSLETTER

Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.

advertisement
Partner Center
advertisement

Blog

Tara Baukus Mello

Cheap gas boosts holiday travel

With gas prices at the lowest they have been for Thanksgiving in five years, holiday travel this year will be up significantly, says AAA.  ... Read more


Connect with us