Balloon
Mortgages
Balloon mortgages are home
loans that typically last for shorter periods of time,
most are between 3 and 10 years, and these types of loans
allow the borrower to pay lower monthly payments and interest
rates. Often when the loan period has ended the home owner
is required to pay the remaining balance in full. When
certain criteria are met lenders may convert the home
loan to a fixed or adjustable rate mortgage.