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.
Bankrate wants to hear from you and encourages thoughtful and constructive comments. We ask that you stay focused on the story topic, respect other people's opinions, and avoid profanity, offensive statements, illegal contents and advertisement posts. Comments are not reviewed before they are posted. Bankrate reserves the right (but is not obligated) to edit or delete your comments. Please avoid posting private or confidential information, and also keep in mind that anything you post may be disclosed, published, transmitted or reused. We do not permit the inclusion of hyperlinks in comments and may remove any comment that includes a hyperlink.
Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.
Tesla is tapping its current owners to act as a sales force by offering them cash and other incentives, including a free Model X, when they refer friends who buy a car.
... Read more