A mortgage in which a large portion of the borrowed principal is repaid in a single payment at the end of the loan period.
- 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.
For editors and proofreaders
Syllabification: bal·loon mort·gage
What do you find interesting about this word or phrase?
Comments that don't adhere to our Community Guidelines may be moderated or removed.