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.

More from Keith Marshall
When is the best time to get my home on the market?
My Friday Real Estate Update I’ve been busy this week, at home...
Read More
Join the Conversation


Leave a comment
Leave a comment

Your email address will not be published. Required fields are marked *