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The World Law Dictionary Project

English may be the common language of the world, but the Common Law is not the common law of the world

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balloon payment mortgage noun


a loan which requires small regular payments to be made for a certain period of time and and a large portion of the borrowed amount, called a balloon payment, to be repaid in a single payment at the end of the loan period
A borrower who has a balloon-payment mortgage closed on our standard balloon-payment mortgage documents typically has a conditional right to refinance at maturity into a fixed-rate mortgage.

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