Balloon mortgage
Balloon mortgage
It is a short term payment with mortgage payments too low to pay off the balance in the specified time. This loan thus requires payment in full usually a lump sum amount, payable earliear than the normal amortization period by paying the balance in a shorter period of say 5-7 years. For eg. The amortization period can be 30 years, but the payment will be required to be paid in full at the end of a 5 or 7 or 10 year period through a lump sum or balloon payment.
5.96
