Definitions for **"Balloon Mortgage"**

A mortgage loan in which the monthly payments are not large enough to repay the loan by the end of the term. So at the end of the term, the remaining balance comes due in a single large payment.

A mortgage where the monthly payments are based on a 30-year schedule, but the entire mortgage becomes due at the end of a set term, normally five to seven years.

A relatively short-term, fixed-rate loan that ends in one large final lump sum payment of the remaining principal. Borrowers may be able to refinance the loan when the balloon payment comes due.

A mortgage that has regular payments for a period of time, typically 3 to 7 years, and a large single payment at the end of the period to pay off the entire balance.

A mortgage that typically offers low rates for an initial period of time (usually less than 10) years, and then requires that the balance is due or is refinanced by the borrower. The loan is typically amortized as if it would be paid over a thirty year period to keep monthly payments low. Cap--The limit on an adjustable rate mortgage that the payment or interest rate can be increased or decreased during each adjustment period (usually 6 or 12 months). Some ARMs also have a lifetime cap.

at the end of the loan period there is a lump sum due. This lump sum payment is referred to as a balloon payment and thus the term a balloon mortgage.

A mortgage whose final payment is greater than the preceding installment payments and the balloon payment pays the loan in full.

A mortgage that has a fixed rate, level monthly payments that amortizes over a certain term, with the unpaid balance due as a lump sum on the balloon maturity date.

A mortgage that requires that a final lump sum payment be paid at the end of the loan term.

A balloon mortgage is one that has level monthly payments that'll amortize it over a stated term, but with a lump sum payment due at the end of an earlier specified term.

A mortgage loan that requires the remaining balance to be paid at an agreed time after an agreed amount of monthly payments.

A mortgage where the remaining balance due to the lender must be paid all at once, usually five, seven or 10 years down the line, at which time the homeowner can refinance.

A mortgage in which the amortization period is longer than the term of the loan. The remaining balance is due at the end of the loan's term and is called a balloon payment.

A lump sum payment that will be due at the end of the loan term.

A mortgage that has level monthly payments amortized over a stated term (generally 30 years) but that provides for a lump sum payment to be due at the end of an earlier specified term.

A mortgage where the amount financed is not fully amortized over the period of the loan. When the loan becomes due a large sum, or "balloon" payment, is required to satisfy the mortgage.

Short-term, fixed-rate loan that includes small payments for a specified period of time and one final, large payment for the remaining amount of principal. Example: Balloon mortgage of $25,000 including interest-only payments for five years at 12% ($250 per month), with the full principal of $25,000 due and payable after five years.

A mortgage where for a set period of time, the interest is lower than normal. However, the entire loan amount becomes due at the end of the term of the loan.

A type of mortgage wherein a borrower pays principal and interest each month up to a specified date; then the entire balance of the loan is due.

A mortgage with level monthly payments for a set period of time and one final lump sum payment at the end of a specified term.

A mortgage in which the payments do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date, usually at the end of the term. Some balloon payment loans allow the borrower to convert to a different loan program at the time the final lump sum is due.

A short-term loan, usually 5 to 7 years, that features a fixed interest rate, and a final large balloon payment for the balance of the mortgage.

Mortgage with a final lump sum payment that is greater than the peceding paymens and pays the loan in full.

Where principal and interest on a loan are amortized for a longer period than the term of the loan. For example, a 30-year amortization and a 5-year term. At the end of the 5-year term, the outstanding principal on the loan is due. The principal sum due at maturity is known as the “balloon.

A loan that has a specified payment period and then requires one, lump sum payment of the remaining balance at the end of the payment period

A short-term, fixed-rate loan. Initial payments are small, with a large payment due at the end of the loan to cover the remaining balance.

a special type of fixed-rate mortgage that offers low, fixed monthly payments for a selected period of time (usually five to seven years), then requires one large payment (the “Balloon”) for the remaining principal.

Longer amortization period than the term of the loan. Usually a 30 year amortization schedule on a 5 year term. At the end of the term, the remaining outstanding principal is due. This final payment is called a balloon payment.

A balloon mortgage is usually rather short, with a term of five to seven years. At the end of the mortgage, you need to pay off the entire loan.

a mortgage that requires a lump sum payment of the unpaid balance at a specified date in the future.

A mortgage loan that includes terms requiring repayment of the loan in full on a set date prior to the full amortization of the loan balance.

A mortgage with an installment payment schedule, which also requires a lump sum payment(s) at a specific time.

mortgage that requires the full balance to be paid in one lump sum, at a predetermined time, before the full term of the loan. Monthly payments until that time are calculated as if the loan would be paid over the full term of the loan.

A loan amortized for 30 years with the interest rate fixed for a portion of that time (usually 5 or 7 years) at the end of this period the interest will either be reset or loan paid in full.

A mortgage that has level monthly payments over a specified term along with a lump sum payment to be due at the end of that term.

(Also called step rate loans.) Home loans in which the first 5 or 7 years are financed at an interest rate which is lower than the fixed rate when the loan is originated. After 5 or 7 years, depending on the contract, the buyer is required to pay the total balance of the loan in a single large payment. Some hybrid balloon loans include an option which allows the borrower to extend the term of the loan provided some conditions are met. The fixed interest rate applied is usually slightly higher than the fixed interest rate available at the time of extension.

A mortgage with monthly payments, followed by a lump sum due at the end of the loan

A short-term fixed-rate loan which involves smaller payments for a certain period of time and one large payment for the entire amount of the outstanding principal.

A mortgage with periodic payments that do not fully amortize the loan. The outstanding balance of the mortgage is due in a lump sum at the end of the term.

This is a mortgage with a low interest rate that stays level for a short time (typically five to seven years), with a large, final "balloon payment" that you will either refinance or pay off in full.

A mortgage in which the payments do not fully pay off the loan and the balance of the loan is due in a lump sum at a specific date.

This is a loan which must be paid off after a certain period. The advantage they offer is an interest rate that is lower than a mortgage that is made for 30 years.

A mortgage with periodic installments of principal and interest which do not fully amortize the loan as of its maturity date. With such mortgages, the outstanding or unpaid principal balance is due and payable in full as of its maturity date.

This type of loan requires the borrower to make regular monthly payments which amortize over a specified term, but at the end of that term a final payment or large lump sum (balloon payment) must be made to pay off the remaining principal. The typical term for a balloon loan is 10 year.

A mortgage allowing for lower monthly payments, which are insufficient to fully amortize the face amount of the note prior to maturity. This means that a principal sum known as a "Balloon" is due at maturity.

A mortgage that is not fully amortized. As a result, the borrower must pay off the principal with a lump-sum payment at the end of the mortgage term, or refinance.

A mortgage that requires a large portion of the principal to be paid in one lump sum.

A mortgage that has a substantial amount of principal due at the maturity of the note.

A mortgage in which the borrower's monthly payments are amortized over a longer period than the actual term of the mortgage. As a result, at the end of the loan term, the borrower must pay off the remaining balance with a single lump sum payment or refinance the loan.

A balloon mortgage has monthly payments made for a specified period of time, with the balance of the loan paid in full at the end of the balloon term. Like an ARM, interest rates on balloon mortgage are typically lower than on a fixed rate.

a mortgage that typically offers low rates for a short period of time (usually 5, 7 or 10 years); after that period of time elapses the balance is due in full.

Loan with monthly payments of principal and interest that do not fully amortize the loan. The last payment is then made up of a lump-sum of the remaining principal balance.

A balloon mortgage is a mortgage that is amortized over the full term of the loan repayment period but at the end of a specified period the balance of the mortgage comes due. Thus, a balloon payment needs to be made. For example, with a 7-year balloon you would make monthly payments for seven years that have been calculated based on a 30-year mortgage payment. At the end of the 7 years, the remaining principal balance would be due and payable in full.

A short-term, fixed-rate loan with low payments for a set number of years and a large balloon payment of the remainder of the principal due at the end of the term.

A Short time fixed rate loan that involves small payments for a certain time period and one large payment for the remaining principal at a specified time.

This is a mortgage with monthly payments which are insufficient to amortize the loan. A balloon—or lump sum payment—is due at the end of the term. Balloon mortgages frequently contain a provision to refinance when the balloon payment is due.

A mortgage with monthly payments due for a certain period of time at the end of which the remaining balance is due.

A fixed-rate loan or debt that is not fully amortized. The borrower pays low monthly payments and then, at the end of the loan term (which can be 5, 7, 10 or 15 years) all of the outstanding debt is due in a large lump sum or â€œballoonâ€ payment.

A mortgage that has level monthly payments that will amortize it over a stated term but that provides for a lump sum payment to be due at the end of an earlier specified term.

A loan which is amortized for a longer period than the term of the loan. Usually this refers to a thirty-year amortization and a five year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due. This final payment is known as a balloon payment.

A mortgage that is amortized over a specific period of years, but requires a lump sum payment in full at a date earlier than the maturity date of the mortgage.

Balloon payment Bankruptcy charge

A mortgage that is amortized over a specific timeframe (usually 15 or 30 years) that is due in full prior point in time (as example, 5 years).

A balloon mortgage is a loan that stays locked in at a fixed percentage rate for a set number of years, at the end of which the entire balance must be paid off in a single balloon payment. This mortgage is a good choice if you know you'll be selling or refinancing your home before the balloon payment becomes due.

Usually a short-term fixed-rate loan that involves small payments for a certain period of time and one large payment for the remaining principal balance, due at a time specified in the contract. A balloon payment is also known as a call date.

A mortgage with regular principal and interest payments that at the end of the term does not fully pay off the balance due on the note. The remaining balance is then due in a lump-sum payment.

A mortgage with level monthly payments that amortizes over a stated term but also requires that a lump sum payment be paid at the end of an earlier specified term.

A balloon mortgage is a loan typically used for short-term financing and which offers lower interest rates for usually five, seven or ten years. At the end of this term, the borrower must pay off the entire outstanding balance in a lump-sum (balloon) payment, or refinance the balance. During the initial term, the regular monthly payments made, when aggregated, do not fully amortize (pay off) the outstanding principal balance.

Short term, fixed rate loan that includes small payments for a set period and one large payment covering the remaining amount at a time specified in the loan contract.

short term loan, usually at a fixed interest rate, paid back in equal monthly payments with a large, final "balloon" payment for the balance.

A mortgage based on a specified period of time, and after the time elapses the balance of the unpaid mortgage is due in one lump sum, or the property will need to be refinanced.

A short-term fixed-rate loan which involves smaller payments for a certain period of time and one large payment for the entire balance due at the end of the loan term.

A mortgage that has level monthly payments of principal and interest that do not fully amortize the loan. The balance is due in a lump sum payment at a specified date, usually at the end of the term.

Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a time specified in the contract.

Mortgage with a final lump sum payment that is greater than preceding payments and pays the loan in full.

A balloon mortgage offers lower interest rates for shorter-term financing, usually five, seven or ten years. At the end of this term, the borrower requires refinancing or must pay off the outstanding balance in a lump-sum (balloon) payment.

A mortgage with monthly payments based on a 30-year amortization schedule and the unpaid principal balance due in a lump sum payment at the end of a specific period (usually 5 or 7 years) earlier than 30 years. The mortgage contains an option to reset the interest rate to the current market rate and to extend the maturity date provided certain conditions are satisfied.

A type of mortgage loan that has level monthly payments exactly like a traditional fixed rate mortgage except that it becomes 100% due after a specified amount of time has elapsed. When the loan matures, you must pay the loan off in cash (Balloon Payment) or refinance. The advantage of this type of loan is that the initial rate is usually lower than a normal fixed rate loan.

A fixed-rate loan with low payments for a set number of years and one final balloon payment of the remainder of the principal at the end of that set period.

A mortgage which typically offers low, fixed rate payments as though the mortgage was scheduled on a 30 year term. But instead, the loan has a shorter term (for example, 5, 7 or 10 years) which ends with a single large payment (a "balloon payment") for all the remaining principle.

A mortgage that has equal monthly payments which are insufficient to amortize the loan so that a "balloon" or lump sum payment for the remaining balance is due at the end of the term. Frequently, these mortgages contain an opportunity to refinance.

A mortgage with installments of principal and interest that, at the end of the agreed loan term, have not fully repaid the loan. The remaining balance is usually paid in a lump sum at that time (a "balloon" payment).

A fixed rate mortgage with monthly payments which are not largeenough to pay off the loan during the term. Balloons end after aspecific time, usually one to five years, after which the entireremaining balance must be paid in a lump sum.

A balloon mortgage is a large payment at the end of your loan term. This is often after a series of low monthly payments. A balloon mortgage generally offers very low rates for an initial period of time (usually 5, 7, or 10 years). After the grace period ends the entire balance is due. Many borrowers pay the balance by refinancing their mortgage.

A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortized as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

A short-term, fixed-rate mortgage loan with fixed monthly payments followed by one large final payment to pay off the loan balance (the 'balloon'). The mortgage is amortized over the full term of the loan repayment period resulting in lower monthly payments, but at the end of a specified period the balance of the mortgage comes due. For example, with a 7-year balloon you would make monthly payments for seven years that have been calculated based on a 30-year mortgage payment. At the end of the seven years, the remaining principal balance is due and payable in full.

A loan that has regular monthly payments which amortize over a stated term but call for a final lump sum (balloon payment) at the end of a specified term, or maturity date, such as 10 years.

A mortgage with periodic payments of principal and interest that do not pay the note in full at the end of the term. A lump sum to satisfy the full amount of the loan is due at the term's end.

A mortgage where the principle balance will not be paid off by making the regular payments. Instead, a balloon payment of principle will be required at the end of the term to pay off the mortgage.

A mortgage loan that requires all of the remaining principal balance be paid at a some specific point in time. (Sometimes the mortgage is an interest-only loan with the balloon payment , i.e., the full amount initially borrowed, due at some point down the road. Other times, the loan is to be partially paid off during the mortgage, with the balance paid in full at that pre-set time.)

A mortgage that has level monthly payments that are insufficient to fully amortize the principal and interest within the term of the loan. With a balloon mortgage, a lump sum payment ("Balloon Payment") is due at maturity.

With a balloon mortgage you start by making payments as you would with a full term loan, but after a certain period the balance of the mortgage comes due.

Balloon loans are short term mortgages that have some features of a fixed rate mortgage. The loans provide a level payment feature during the term of the loan, but as opposed to the 30 year fixed rate mortgage, balloon loans do not fully amortize over the original term. Balloon loans can have many types of maturities, but most balloons that are first mortgages have a term of 5 to 7 years. At the end of the "balloon" term, the full amount of the loan is due and can be paid off or refinanced.

The balloon generally offers low rates for 5, 7, or 10 years; then the balance is due or is refinanced by the borrower.

A loan which is repaid by a series of small, periodic payments until a given date, when either the balance comes due in a single, large payment or the amount of the payments rises significantly.

A note calling for periodic payments that are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as a "balloon" is due at maturity.

A mortgage for which the specified periodic payments do not produce a complete amortization of the principal balance at maturity. The unpaid loan balance is due at maturity.

Type of mortgage which is generally short in length, but is amortized over 25 or 30 years so that the borrower pays a combination of principle and interest each month. At the end of the loan term, the entire balance of the loan must be repaid at once.

There is one large payment that is contracted to be paid on the principal amount. Until that time, small payments are made with a short-term fixed-rate loan.

A mortgage that has level monthly payments over a stated term but which provides for a lump-sum payment to be due at the end of a previously specified time (e.g., five and seven- year balloon mortgages, where the payment is fixed for 5 or 7 years, then the remaining balance becomes due and payable at the end of the term).

Usually a short-term fixed-rate loan that involves small payments for a certain period of time with the balance due in a single, large payment at a time specified in the contract. Whenever the balloon mortgage becomes due, the entire unpaid balance is due. Generally, the homeowner must either refinance or sell the property.

A form of promissory note which calls for minimum amounts of principal to be paid resulting in a large lump sum payment at the end of the term or due date.

A real estate loan in which some portion of the debt will remain unpaid at the end of the term of the loan. A balloon will usually result in a single large payment due when the loan ends.

Usually a short-term fixed-rate loan which involves a set interest rate for a certain period of time (usually 5 or 7 years), and one large payment for the remaining amount of the principal at the conclusion of that time frame (may be able to convert or refinance).

A mortgage which is payable in full after a period that is shorter than the term. It therefore has a balloon that must be repaid or refinanced. On a 7-year balloon loan, for example, the payment is usually calculated over a 30-year period, and the balance at the end of the 7th year must be repaid or refinanced at that time.

Type of mortgage home loan structured whereby the borrower makes consistently, regular payments up until the end of the term when a sizably, large final payment (balloon payment) comes due in conjunction with the loan's maturity date.

A mortgage with periodic installments of principal and interest or interest only; installment payments do not fully amortize the loan. The unpaid principal is due in a lump sum at the end of the term.

A loan in which a large payment is required at the end of the term.

Atypically, a mortgage that offers low rates for an initial period of time (usually 5, 7, or 10) years. After the period has elapsed, the balance is due or is refinanced by the borrower.

A mortgage with low payment installments. The balance of the mortgage is due in a lump sum at a specified date, usually at the end of the term.

A type of loan secured by real property, with monthly payments based on a fixed interest rate. The loan is usually for a short term and payments may cover interest only with principal due in full at the end of the term.

A mortgage loan with an amortization schedule longer than the maturity of the loan. Typically offer lower interest rates for shorter-term financing. At the end of the balloon term, you have the option to refinance the mortgage for the remaining term or pay off the outstanding balance with a lump-sum payment. Certain conditions may apply if you choose to refinance your loan at the end of the balloon term.

A mortgage in which the final payment is larger than any of the preceding payments. A balloon mortgage is usually one in which the loan has been amortized for a specific period of time, but which provides for a balloon payment at some specific time prior to the expiration of that period of time.

A type of mortgage loan that requires paying regular monthly payments for interest, and possibly partial amortization of the loan principal, so that at the end of the term of the mortgage, there is a lump sum payment, commonly called a "balloon payment" of the remaining principal due.

A short-term, fixed-rate loan with fixed monthly payments for a set number of years and a large final balloon payment of the remainder of the principal.

Has principal and interest payments that do not fully amortize the loan. To compensate, the balance of the mortgage is due in a lump sum at a specified date in the future.

A mortgage loan with set payments for a set period of time. At the end of term the balance loan must be paid in full by one lump sum.

Type of mortgage loan where monthly payments are made until a certain date when the remaining balance becomes payable in full.

A mortgage which is payable in full after a period that is shorter than the term. In most cases, the balance is refinanced with the current or another lender. On a 7-year balloon loan, for example, the payment is usually calculated over a 30-year period, and the balance at the end of the 7th year must be repaid or refinanced at that time. Balloon mortgages are similar to ARMs in that the borrower trades off a lower rate in the early years against the risk of a higher rate later.

A mortgage that offers lower interest rates for shorter term financing, usually seven years, and requires final payment or refinancing at the end of the term.

A mortgage providing for specific payments at stated regular intervals, with the final payment considerably more than any periodic payments. Usually paid over a short term, such as five to seven years. This type of mortgage may be beneficial if you move before the final payment, as you can benefit from a slightly lower rate.

A type of mortgage that is generally paid over a short period of time, but is amortized over a longer period of time. The borrower typically pays a combination of principal and interest. At the end of the loan term, the entire unpaid balance must be repaid.

Usually a short-term fixed-rate loan involving smaller payments for a period of time and one large payment for the remaining balance at a specific time.

A short-term fixed-rate loan which features small payments for a certain period of time and one large payment for the remaining amount of the principal (balloon payment), paid at the time of the final installment.

A mortgage with a balloon payment. This balloon payment is the final payment of the loan which is larger than any preceding payments.

Mortgage with monthly payments of P & I that do not fully amortize a loan. The balance of the mortgage is due in a lump sum at a predetermined date in the future.

A mortgage where the final payment is considerably larger than the preceding payments.

A mortgage for a fixed term shorter than necessary to fully repay the debt. As a result, the remaining amount of principal is due at the maturity of the loan.

is a mortgage set up so that the monthly payments are too small to pay off the loan within the set period. Usually, the remaining unpaid amount becomes due in a lump sum at the end of the term.

short term (between 5 – 10 years) fixed monthly mortgage loan in which the installments are low, then at the end of the specified time, the remaining principal is paid in one lump sum.

Behaves like a fixed-rate mortgage for a set number of years (usually five or seven) and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.

A mortgage with periodic installments of principal and interest for a set number of years (usually five or seven) and then must be paid off in full in a single "balloon" payment.

A mortgage that is amortized over a stated period but provides for a lump-sum payment due at an earlier period, e.g. 30-year due in 15, where the payments are based on 30-year repayment but the loan is due paid in full in 15 years.

Mortgage with periodic installments of principal and interest which don't fully amortize the loan. The loan balance is usually due at the end of the term.

A mortgage loan with a final payment that is larger than the required periodic payments because the loan amount was not full amortized.

A mortgage in which the borrower's monthly payments are amortized over a longer term than the actual term of the loan. As a result, the borrower must pay off the outstanding balance with a lump sum payment or refinance the loan at the end of the mortgage term.

A loan with a fixed interest rate and monthly payment that becomes due in full, typically after 5 to 7 years.

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 ("the balloon") for all of the remainder of the principal. Typically, the balloon payment may be due at the end of 5, 7, or 10 years. Borrowers with balloon loans may have the right to refinance the loan when the balloon payment is due, but the right to refinance is not guaranteed.

A mortgage with periodic installments of principal and interest which do not fully amortize the loan. The balance of the mortgage is due in a lump sum at the end of the term.

A short-term mortgage, generally at a fixed rate of interest, to be paid back in predetermined, equal monthly payments with a large final payment for the balance of the loan to be paid at the end of the term.

A mortgage with periodic payment of principal and interest that do not fully amortise the loan. The balance of the mortgage is due in a lump sum at a specified date.

a mortgage which is not fully amortized resulting in a “balloon” or lump sum due at a specific date, usually at the end of the term of the loan

A final payment of a mortgage loan that is considerably larger than the required periodic payment because the loan was not fully amortized.

A mortgage which is payable in full after a period that is shorter than the term. Ideally, the balance is refinanced with the current or another lender. For example, on a 10-year balloon mortgage, the payment is usually calculated over a 30-year period, and the balance at the end of the 10th year must be paid in full, either by cash payment or refinancing the loan.

with this type of mortgage the monthly payments are not sufficiently large to pay off the mortgage in its entirety by the end of the term. This type of mortgage therefore requires a balloon payment at the end of the term which will pay off the outstanding balance of the mortgage.

A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal.

A mortgage in which payments are structured in such a way as to require a large lump sum payment at the end of its payment schedule.

A mortgage that amortizes over a 30 year period but ends in a shorter period, usually 5, 7, or 10-years. At that time, the balance of the loan is typically refinanced by the borrower.

a mortgage with a large payment at the end of the loan term. An example would be a 30 year amortization and a 5 year term. At the end of the term the entire unpaid amount of principal (the balloon payment) is due. Many borrowers repay the balloon payment by refinancing the mortgage.

A fixed rate loan that provides for smaller payments for a certain period of time, and one large payment (balloon payment) of the entire balance due at the end of the loan term.

A mortgage with a fixed-rate and low payments for a stated term and one final "balloon payment" of the remaining principal balance at the end of the term.

This is where the remaining balance must be paid in full at the end of a pre-set term.

A mortgage in which the final payment of the principal balance due and payable upon maturity is greater than twice the amount of the regular monthly or periodic payment on the mortgage. It offers low fixed rate payments as though the mortgage were a 30-year tem. However, the loan has a fairly short term (5-7 years, or up to one-half of the 30-year term) and ends with a large “balloon” payment for the remaining principal.

Usually a short-term fixed-rate loan which involves small payments for a certain period of time and one lump sum payment for the remaining amount of the principal at the end of the term.

A mortgage in which the debt service (interest and principal) that is paid regularly will not result in the complete payment of the loan at the end of the mortgage term. The payment that represents the amount of principal still due at the end of the term is called the balloon payment. "To balloon" a mortgage is to schedule the amortization payments over a longer period than the term of the mortgage. See also Amortization, Balloon Payment, Principal.

A mortgage that has level monthly payments which are insufficient to amortize the loan so that a balloon, or lump sum payment is due at the end of the term. Frequently, balloon mortgages contain an opportunity to refinance when the balloon payment is due.

A mortgage with a final payment considerably larger than the preceding payments. Balloon mortgages are typically used when borrowers anticipate receiving a large sum of extra cash to pay the balance, or when they expect to refinance before the balloon payment comes due.

a mortgage that typically offers low rates for an initial period of time (usually 5, 7, or 10) years; after that time period elapses, the balance is due or is refinanced by the borrower.

A home loan, although typically set up on a 30-year repayment schedule, requires the remaining balance-called the baloon payment-be paid in the future at a specific time, typically after the first five or seven years.

Usually a short-term, fixed-rate loan that involves small payments for a period of time followed by one large payment â€” at a specified time in the contract â€” for the remaining principal.

A mortgage in which the interest rate and monthly payment stay the same for a predetermined number of years (typically 5 or 7), whereupon at the end of the loan period, the borrower has to pay the entire balance of the loan (principle + interest) in one final â€œballoonâ€ or lump sum payment or refinance into a new loan at prevailing interest rates.

A mortgage with level monthly payments over a stated term, but which requires a lump sum payment in full due at the end of an earlier specified term

Usually a short-term loan involving small payments for a set period of time and one large payment for the remaining principal balance at a specified time.

a mortgage with a balloon payment. -- View Real Estate Listings

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