A balloon mortgage is a short-term, fixed-rate mortgage that offers a lower interest rate throughout repayment, but requires a lump sum payment due at the end of a specified term. Balloon mortgages have five and seven-year terms, which means the lump sum payment is due at the end of five or seven years, depending on what term you choose.
Consider a balloon mortgage if:
- You plan to sell your home in five to seven years
- You plan to refinance within five to seven years
- You're prepared to pay off your mortgage loan at the end of the specified term
Additional Loan Products