Balloon loan

Balloon loan

A long-term loan in which the payments aren't set up to repay the loan in full by the end of the term. This loan has one large payment due when the loan matures. The type of loan often has a low interest payment. The major disadvantage with this loan is the borrower needs to be disciplined in preparation for the large single payment.

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National Rates

Loan Type Today
30 Year Fixed   5.22
15 Year Fixed   5.17
5/1 Adjustable   5.65

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