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balloon mortgage

Syllabification: bal·loon mort·gage

Definition of balloon mortgage in English:

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 sentences
  • Unlike many other mortgages, balloon mortgages do not pay themselves off at the end of the loan term.
  • The balloon mortgage is a fixed-rate mortgage with a shorter term than traditional mortgages have.
  • Many borrowers of balloon mortgages refinance their loan before the balloon payment is due.

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