What is a Balloon Mortgage?

Balloon mortgages are home loans that typically last for shorter periods of time, most are between 3 and 10 years, and these types of loans allow the borrower to pay lower monthly payments and interest rates. Often when the loan period has ended, the homeowner is required to pay the remaining balance in full. When certain criteria are met, lenders may convert the home loan to a fixed or adjustable-rate mortgage. In case of any questions about balloon mortgages, Hansen Mortgage Services, Inc will be happy to assist you!