Last reviewed 08-20-2026Short-Sale.com Editorialglossary
Balloon Loan
CFPB
Updated 08-20-2026
Balloon Loan
For mortgages, a balloon loan means that the loan has a larger-than-usual, one-time payment, it is higher than your other payments, sometimes much higher. If you cannot pay the balloon amount, you might have to refinance, sell your home, or face foreclosure. Find out why balloon loans might be risky (cfpb.gov/askcfpb/104).
CFPB Mortgage Terms
CFPB · pp. 2–5
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