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LSDefine

Simple English definitions for legal terms

balloon mortgage

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A quick definition of balloon mortgage:

A balloon mortgage is a type of mortgage where the borrower makes payments that are not enough to pay off the entire loan. This means that at the end of the loan term, the borrower must make a large payment to fully pay off the loan. For example, a borrower might make monthly payments of $500, but then have to make a final payment of $2,000. Balloon mortgages are often used for commercial mortgages, but can be risky if the borrower is unable to refinance the loan later.

A more thorough explanation:

A balloon mortgage is a type of mortgage where the borrower makes payments that are not enough to pay off the entire loan during the amortization period. This means that at the end of the loan term, the borrower must make a large payment to fully pay off the loan.

For example, a borrower might have a monthly mortgage payment of $500, but at the end of the loan term, they must make a final payment of $2,000 to pay off the loan in full.

Balloon mortgages are often used for commercial mortgages, where developers take out a balloon mortgage with the intention of refinancing later with a traditional mortgage. However, if the developer is unable to refinance, they may be in a difficult financial position.

For instance, if a commercial developer takes out a balloon mortgage to finance a new building, they may plan to refinance the loan after the building is completed and occupied. However, if the economy takes a downturn and the developer is unable to secure a traditional mortgage, they may be unable to make the final payment on the balloon mortgage, which could result in foreclosure.

balancing test | balloon payment

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Dkk
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Welcome! It really is a great school. Much more to explore than I did. Glad at leat someone will like it.
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Dkk
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La Table De Sophie & Bicycletta have gone out of business but everything else should be there.
Dkk
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I will ask though, if you lived in NY, best restaurants for you there?
Dkk
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I plan on doing the reverse. Going west coast to east coast when you did east coast to west.
Cosme and fiaschetteria pistoia are my favorites!
Love Waverly inn too and Cafe Cluny
i lived in west village so all those are in WV but Cosme is more flatiron
Also love Sushi Hatsune for sushi delivery
Oh and a great whole in the wall is K-jun, cajun/korean fushion in koreatown
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Excellent, I took a screenshot. I will figure out later.
@Ijustwannagetinman: banned on hinge fun fact
Dkk
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@Ijustwannagetinman: banned on tinder fun fact
LOL i only do raya im scared of most dating apps. Yall should try it although u do have to pay
all my friends have it though
Dkk
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A dating app for "high profile individuals" hmmm....
I thought raya is pretty exclusive
Dkk
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@CurvyHypnoticSheepdog: This man is established.
@Dkk: we're some lowlifes
can't even say I have a half baked situationship
Dkk
0:11
Indeed, we are the lowest of the lowlifes but we have the potential to be the highest of the high lifes.
maybe I find my wife in law school
0:12
i may not be a high life but i sure can chug one
chug off
gang Ive sent 15 applications in between 12/01 and 12/15 and I've yet to hear back how clapped am i
they dont even want to waste the rejection emails on me smh
Dkk
1:11
@WhyDidIGetMyCPA: Don't expect shit till mid february.
Dkk
1:11
I sent shit in End of October to 1st week November and I have barely heard back.
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