Definition of balloon mortgage in English:

balloon mortgage

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.

    • ‘Unlike many other mortgages, balloon mortgages do not pay themselves off at the end of the loan term.’
    • ‘Qualifications for a balloon mortgage vary depending on the lender you choose, but most require at least a 20% down payment.’
    • ‘Some balloon mortgages feature a conversion option at the end of the initial period.’
    • ‘A balloon mortgage is a non-amortizing loan and does not pay itself off at the end of the loan term.’
    • ‘Choose a balloon mortgage loan for substantially lower initial rates, or if your credit limits the other types of mortgage that you can apply of qualify for.’
    • ‘The most popular balloon mortgages have a fixed rate period of either five or seven years with a thirty-year amortization and no pre-payment penalty.’
    • ‘The most common balloon mortgage terms are 5 years and 7 years.’
    • ‘The lender may also reserve the option to call the loan due with 30 days notice at that time, making this loan similar to a balloon mortgage in some cases.’
    • ‘A balloon mortgage has a lower rate and lower monthly payments than a fixed-rate mortgage.’
    • ‘The 7-year balloon mortgage is for those who relocate regularly or who plan to stay in their home for less than seven years.’
    • ‘With a 5 year balloon mortgage, the term is 5 years, but the payments will be calculated on a 30 year term.’
    • ‘Many borrowers of balloon mortgages refinance their loan before the balloon payment is due.’
    • ‘The 5 year balloon mortgage will have the same interest rate and payment for the first 5 years of the mortgage.’
    • ‘At the due date, you can either refinance the balloon mortgage or pay it off in cash.’
    • ‘The advantage of a balloon mortgage is that you get the stable payment of a fixed-rate loan, but have the flexibility of a short-term loan.’
    • ‘The balloon mortgage is a fixed-rate mortgage with a shorter term than traditional mortgages have.’
    • ‘Most balloon mortgages are for 3 to 7 years.’
    • ‘It might help to compare balloon mortgage financing side by side with standard fixed rate mortgage financing.’
    • ‘At the time of this writing, I am not aware that any lenders are offering balloon mortgages in jumbo loan amounts.’
    • ‘A balloon mortgage is one of the many non-traditional mortgages available to real estate buyers.’