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Balloon Mortgage
Balloon Mortgage - With a balloon mortgage, your payments are usually set based on a 30-year amortization period, but the loan actually becomes due much sooner than that, calling for a large, lump-sum payment at the end of the loan, which is referred to as the balloon payment. If you have a balloon mortgage, you will need to pay off your mortgage in full or refinance at the end of the balloon period.
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