Mortgages come in many different varieties and if your situation is unusual, you may be best served by an unusual type of mortgage.
One of these lesser-used mortgage types is known as a balloon mortgage, also referred to as a balloon payment mortgage.
In this article, we’ll discuss what it is and how it’s different, when you might use it, and its benefits and drawbacks.
What Is a Balloon Mortgage?
When you purchase a home with a balloon mortgage, you will begin making monthly payments for an amount that is similar to a standard 30-year fixed mortgage at the same rate.