Balloon Mortgage
Fannie Mae
Updated 10-31-2026
Balloon Mortgage
A mortgage that has level monthly payments that would fully amortize it over a stated term, but which provides for a lump-sum payment to be due at the end of an earlier specified term.
Fannie Mae Glossary of Terms
Fannie Mae · p. 4
California Association of Realtors
Updated 10-31-2026
Balloon Mortgage
A loan that is amortized for a longer period than the term of the loan. Usually this refers to a 30-year amortization and a five-year term. At the end of the term of the loan, the remaining outstanding principal on the loan is due.
California Association of Realtors Glossary
California Association of Realtors · p. 2
FreddieMac
Updated 10-31-2026
Balloon Mortgage
A mortgage with monthly payments based on a 30-year amortization schedule, with the unpaid balance due in a lump sum payment at the end of a specific period of time (usually 5 or 7 years). The mortgage contains an option to "reset" the interest rate to the current market rate and to extend the due date if certain conditions are met.
FreddieMac Glossary
FreddieMac · p. 3
FTC
Updated 10-31-2026
Balloon Mortgage
A mortgage with monthly payments often based on a 30-year amortization schedule, with the unpaid balance due in a lump sum payment at the end of a specific period of time (usually 5 or 7 years). The mort-gage may contain an option to "reset" the interest rate to the current market rate and to extend the due date if certain conditions are met.
FTC Real Estate Terms
FTC · p. 2
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