Mortgage Dictionary
A guide to mortgage and real estate terminology
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New Definitions |
| Balloon Mortgage |
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Balloon mortgage loans are short-term fixed-rate loans with fixed monthly payments for a set number of years followed by one large final balloon payment for all of the remainder of the principal. |
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Additional comments :
One thing everybody needs to remember on balloon mortgages, you have the option to refinance or pay in full, but the company from whom you get the balloon mortgage may not guarantee they will do that refinancing themselves.
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