This section allows cross-market comparisons.
Glossary Definition
Balloon Mortgages

The balloon payment is the original amount borrowed less the amount amortized over the life of the mortgage. A balloon mortgage is treated as long-term finance but the contract rate is renegotiated at a series of specified future dates. The lender thus provides long-term funds for what is effectively short-term borrowing, i.e., a short-term balloon loan in which the lender continually refinances the remainder of the term of the mortgage at each specified renegotiation date.