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.

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.


Investment dictionary. . 2012.

Look at other dictionaries:

  • balloon mortgage — see mortgage Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. balloon mortgage n …   Law dictionary

  • balloon mortgage — A mortgage loan with a balloon payment. Typically, the balloon payment is due 10 or 15 years after the loan is made. American Banker Glossary * * * balloon mortgage balloon mortgage ➔ mortgage1 * * * balloon mortgage UK US noun [C] FINANCE ► a… …   Financial and business terms

  • balloon mortgage — A mortgage in which one or more large payments may be made as part of the repayment profile; it is also called a non amortizing mortgage. With a balloon mortgage a lump sum often has to be repaid at the end of the term to cover the remaining debt …   Big dictionary of business and management

  • balloon mortgage — bal loon ,mortgage noun count AMERICAN a MORTGAGE that you pay back in regular small payments with one large final payment, which is called a balloon payment …   Usage of the words and phrases in modern English

  • balloon mortgage — /bəˌlu:n mɔ:gɪdʒ/ noun US a mortgage where the final payment (called a ‘balloon payment’) is larger than the others …   Dictionary of banking and finance

  • balloon mortgage — A mortgage providing for specific payments at stated regular intervals, with the final payment considerably more than any of the periodic payments …   Black's law dictionary

  • balloon mortgage — …   Useful english dictionary

  • mortgage — mort·gage 1 / mȯr gij/ n [Anglo French, from Old French, from mort dead (from Latin mortuus ) + gage security] 1 a: a conveyance of title to property that is given to secure an obligation (as a debt) and that is defeated upon payment or… …   Law dictionary

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

  • mortgage — /morgaj/ A mortgage is an interest in land created by a written instrument providing security for the performance of a duty or the payment of a debt. At common law, an estate created by a conveyance absolute in its form, but intended to secure… …   Black's law dictionary

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