Today’s real estate word of the day is balloon payment. So what we’re going to do is we’re going to define the word we’re going to use in a sentence and talk about it for just a little bit. So thanks for joining us. Balloon payment, the final sum payment that is due at the termination of a balloon mortgage. So that’s the definition for you. So use it in sentence. Make sure my balloon payment is due because the term is up.
Pretty simple, and what that’s basically meaning is that you have one lump sum payment due to a lender to terminate and end your mortgage, this balloon payment is often going to be the culmination of a mortgage that started as a balloon payment, probably with a 30 year amortization, but ballooned in a certain period of time. So common Valognes could be like a 228 or a three twenty seven. And what those would be is fixed for that period of time and then with balloon payments after those terms are completed. Right. So those are options that could come up. And now we’ve kind of defined the word. We’ve talked about it and, you know, just a little bit more.
See balloon mortgage, if you need some more information on what a balloon payment is all about. And there are some remedies if you can’t make this payment and what you could do. But we’ll have to discuss that if you get into that sticky situation. But plan on making that payment on time and paying that mortgage off, probably by refinancing or possibly by selling. We’re here to help you out neither which way if you need any assistance at all.