If you’re thinking about purchasing a home, you should get familiar with your mortgage options. Balloon mortgages are not as common as traditional 15-year and 30-year mortgages. However, there are ...

What Is a Balloon Payment? A balloon payment is a large, one-time sum due at the end of a loan term, following smaller periodic payments that typically cover primarily or exclusively interest costs.

The loan amount that you borrow is called the principal, and the interest represents the cost of borrowing charged by the lender. To calculate the principal and interest, multiply the principal amount ...