Balloon payment mortgage

bA balloon payment mortgage is a mortgage, which does not fully amortize over the term of the note, thus leaving a balance due at maturity. The final payment is called a balloon payment because of its large size.

Balloon payment mortgages are more common in commercial real estate than in residential real estate. A balloon payment mortgage may have a fixed or a floating interest rate.

For more information on types of mortgages and for your real estate questions, please give me a call.

Last time’s real estate vocabulary word was Abatement.

Keith Marshall is a realtor with Prudential Grand Valley Realty, serving Waterloo, Kitchener and Cambridge. If you’re thinking of buying or selling your house or condo, please give me contact me. I aim to take the stress and mystery out of the home buying and selling process.

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