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What is a balloon mortgage payment?

April 26, 2017balloon loan mortgage mortgage loan mortgage rate payment Quote

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What is a balloon mortgage payment?

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A balloon mortgage payment is a lump sum due to the lender after a specified time on a loan. These terms can range from 2 years up to 20 years. This will vary on each lender’s unique loan programs. Balloon mortgage payments are extremely common on owner-carry back loans. These types of loans are typically considered for short term investments / purchases. The rates can start lower than fixed, but you never know what the rate will be like when the balloon payment is due.