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Balloon
Mortgage
A balloon
mortgage,
which is
amortized for
a longer
period than
the term of
the loan.
Usually this
applies to a
thirty-year
amortization
and a
five-year
term. At the
end of the
loan's term,
the remaining
outstanding
principal on
the loan is
due. This
remaining
payment is
known as
balloon
payment.