Home > Terms > English, UK (UE) > Balloon mortgage

Balloon mortgage

A mortgage loan that requires the remaining principal balance be paid at a specific point in time. For example, a loan may be amortised as if it would be paid over a thirty year period, but requires that at the end of the tenth year the entire remaining balance must be paid.

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  • Part of Speech: noun
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  • Blossary:
  • Industry/Domain: Real estate
  • Category: Mortgage
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