Our Mortgage Rate Relief Program is back! For a limited time, eligible homebuyers may qualify for rates up to 1.5% lower than current market rates. Learn how >

Balloon Mortgage

Definition

A loan that provides you with lower-than-usual monthly payments for a set period of time followed by a payment larger than usual at the end of your loan repayment period. While a balloon loan may lower your monthly payments, it can also mean you make higher interest payments over the life of the loan.