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how does a balloon mortgage work How does a balloon mortgage work – Answers.com – A balloon mortgage is a short-term, fixed rate home loan with fixed monthly payments for a set number of years (usually 5-10) followed by a final payment of the principal. Payments are usually lower with a balloon mortgage because only the interest is paid each month.
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balloon mortgage definition Definition of Balloon Mortgage | What is Balloon Mortgage. – Definition of ‘Balloon Mortgage’. Definition: A balloon mortgage is a financing mechanism where the payments are not fully amortized over the term of the loan. Sometimes the borrower needs to pay only the interest on the loan. As the loan is not fully amortized, the.
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