![]() Since few borrowers can afford to cover the entire balloon payment out of their available funds, they usually either refinance the loan or sell the property when the payment comes due. ![]() This last payment is called a "balloon," because it swells enormously compared to the monthly payments you had been making. ![]() They're an alternative to adjustable rate mortgages (ARMs) for people who are looking to get the lowest interest rate they can.Ī balloon mortgage is a short-term loan where you make regular mortgage payments for a few years, then pay off the rest in one lump sum. Balloon Mortgage Loan Overviewīalloon loans aren't as popular as they once were, but they're still around. Total amount of interest you will save by prepaying your mortgage. ICB Solutions | NMLS #491986 ( Close Modal Mortgage products are not offered directly on the website and if you are connected to a lender through, specific terms and conditions from that lender will apply. will not charge, seek or accept fees of any kind from you. By submitting your information you agree Mortgage Research Center can provide your information to one of these companies, who will then contact you. For a full list of these companies click here. If you submit your information on this site, one or more of these companies will contact you with additional information regarding your request. ICB Solutions and Mortgage Research Center receive compensation for providing marketing services to a select group of companies involved in helping consumers find, buy or refinance homes. ![]() Neither, Mortgage Research Center nor ICB Solutions are endorsed by, sponsored by or affiliated with any government agency. ICB Solutions partners with a private company, Mortgage Research Center, LLC, (nmls # 1907), that provides mortgage information and connects homebuyers with lenders. is a product of ICB Solutions, a division of Neighbors Bank. ![]()
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