Balloon Mortgage

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Dictionary Says

Definition of 'Balloon Mortgage'

A type of short-term mortgage. Balloon mortgages require borrowers to make regular payments for a specific interval, then pay off the remaining balance within a relatively short time. Some types of balloon mortgages can be interest-only for 10 years, and the final "balloon" payment to pay off the balance comes as one large installment at the end of the term.
Investopedia Says

Investopedia explains 'Balloon Mortgage'

Balloon mortgages have the option for early repayment or can be set up similar to a 30-year fixed-rate mortgage with the embedded option. The total debt repayment of these loans is lower than that of conventional fixed-rate mortgages. Balloon mortgages take the form of interest-only loans or partially amortizing mortgages.
Search results for

'Balloon Mortgage'

  • 6 Reasons To Avoid Private Mortgage Insurance

    http://www.investopedia.com/articles/pf/07/avoid_pmi.asp
    ... Many are adjustable-rate loans, may contain balloon provisions, and are due in 15
    or 20 years (as ... The Bottom Line Private mortgage insurance is expensive. ...

  • Top 6 Mortgage Mistakes

    http://www.investopedia.com/articles/mortgages-real-estate/10/top-mortgage-mistakes.asp
    ... Name your payment loans let borrowers decide exactly how much they want to pay on
    their mortgage each month. The catch is that a big balloon principal payment ...

  • Subprime Lending: Helping Hand Or Underhanded?

    http://www.investopedia.com/articles/basics/07/subprime_basics.asp
    ... Then, the Alternative Mortgage Transaction Parity Act, passed in 1982, enabled
    the use of variable-rate loans and balloon payments. ...

  • 5 Risky Mortgage Types To Avoid

    http://www.investopedia.com/articles/mortgages-real-estate/10/5-risky-mortgage-loans.asp
    ... significantly more interest than they would have with a conventional mortgage.
    Depending on how the loan is structured, you may face a large balloon payment of ...

  • This ARM Has Teeth

    http://www.investopedia.com/articles/pf/07/arm-reset.asp
    ... Saving Your Home From Foreclosure and Are You Living Too Close To The Edge?) You
    might change the mortgage into a fixed-rate loan or negotiate a balloon payment ...

  • 5 Unusual Sales Taxes You Need To Avoid - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/5-Unusual-Sales-Taxes-You-Need-To-Avoid.aspx
    ... So, if you want to avoid paying taxes when taking a balloon ride over Topeka, make
    sure to leave the rope at home! ... Rates. Savings Home Equity Mortgage Auto. ...

  • 5 Unusual Sales Taxes You Need To Avoid - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0112/5-Unusual-Sales-Taxes-You-Need-To-Avoid.aspx?%3e%3cA+href=
    ... So, if you want to avoid paying taxes when taking a balloon ride over Topeka, make
    sure to leave the rope at home! ... Rates. Savings Home Equity Mortgage Auto. ...

  • 9 Reasons To Buy A House Now - Investopedia.com

    http://financialedge.investopedia.com/financial-edge/0511/9-Reasons-To-Buy-A-House-Now.aspx
    ... Rate Mortgages (ARMs) are also lower now, although there are risks that interest
    rates may increase over the life of the mortgage and the balloon payment due ...

  • Avoiding Foreclosure Scams

    http://www.investopedia.com/articles/pf/07/foreclosure_scam.asp
    ... In the beginning, the mortgage payments are considerably low as you are paying the
    interest ... total amount you borrowed is still due in a lump sum balloon payment ...

  • Home-Equity Loans: The Costs

    http://www.investopedia.com/articles/pf/05/041905.asp
    ... of the principal over the term of the loan, this balloon payment could be ... To continue
    reading, see Paying Off Your Mortgage, Understanding the Mortgage Payment ...

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