Sign Up for Rate Alerts & Offers!
Thinking about buying a home or vehicle soon? Sign up in seconds, and we’ll let you know about rate drops and discounts via email.

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.