What is a Balloon Loan?
Unlike conventional fixed-rate and adjustable-rate mortgage loans, in which monthly payments are calculated to fully pay off the principal balance by the end of the loan term, balloon loans are not fully amortized. They also tend to have shorter terms. You can make a lower monthly payment, as if for a 30-year term, until the end of the loan term. Then a “balloon payment” of the remaining principal balance will be due.
Balloon Mortgage Benefits
When to Choose a Balloon Loan
Our Mortgage Loan Originators can help you find the best mortgage loan option to match your needs and budget. Balloon loans are great for real estate investors and other short-term borrowers who plan to sell the property or refinance the balloon loan before the end of its term. If you’re looking for other ways to save on interest and lower your monthly payments, an adjustable-rate mortgage is a good alternative.
Do more with The Fauquier Bank!
We are a proudly independent community bank with nine branch locations in Northern Virginia: Manassas, Haymarket, Bristow, Gainesville, Warrenton, The Plains, New Baltimore, Catlett, and Bealeton. As one of the only community banks serving Prince William and Fauquier counties, we reinvest our profits back into the local towns we serve. TFB mortgage customers can expect a personalized experience from beginning to end, as our friendly and knowledgeable Mortgage Loan Originators guide you through the application and closing process. To speak with a local mortgage lender, give us a call, chat with us or apply online, or visit your nearest TFB office.
Balloon Loan FAQs