balloon mortgage is a short term fixed rate loan where the
principal and interest is amortized over a longer term than the
actual mortgage term. Also, Balloon Mortgages are
available with are available with as little as 5% down.
With a 5 year balloon mortgage, the term is 5 years, but the
payments will be calculated on a 30 year term. Once the 5
years are up, you must pay off the balance or refinance for the
remaining term of 25 years. Two common Balloon Mortgages are
5/25 and 7/23.
Conventional Loan Types
Adjustable Rate Mortgage (ARM) - offers variable rates and changing monthly
payments. Compare adjustable rates to see
which would best suit your needs. Learn
Adjustable Rate Mortgages