balloon mortgage

Definition of "balloon mortgage"
  1. A type of mortgage that, within a specified time period, does not fully pay off the loan, leading to a final balance that the borrower needs to settle or refinance
How to use "balloon mortgage" in a sentence
  1. After five years, they had to pay the outstanding sum on their balloon mortgage.
  2. The balloon mortgage meant they faced a large payment at the loan's end.
  3. They opted for a balloon mortgage, aware they'd have to refinance the remaining sum later.

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