Resources > Glossary > Balloon Mortgage

Glossary of Notary Public, Mortgage, Signing Agent, and Loan Signing Terms.

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Common Terms 1   Common Terms 2

Balloon Mortgage

Phonetics: bal·loon mort·gage   \bə-'lün\    \mȯr-gij\

Function: noun

Definition 1:
A Balloon Mortgage is 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 contractually specified time. Many people elect to get a balloon mortgage who have the intention of refinancing at a later date.