Share this entry

Share this page

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.

Share this entry

Share this page

 

What do you find interesting about this word or phrase?

Comments that don't adhere to our Community Guidelines may be moderated or removed.

Get more from Oxford Dictionaries

Subscribe to remove ads and access premium resources

Word of the day resilient
Pronunciation: rəˈzilyənt
adjective
able to recoil or spring back into shape…