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Real Estate Glossary

Q: What is Balloon Loan?

A loan that has a large final payment (the balloon) due at the end of the loan term. This type of loan may have lower monthly payments, but can result in a significant payment shock for the borrower at the end of the loan.

What is Balloon Loan?

A loan that has a large final payment (the "balloon") due at the end of the loan term. This type of loan may have lower monthly payments, but can result in a significant payment shock for the borrower at the end of the loan.

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