A balloon mortgage has an interest rate that is fixed for an initial amount of time. At the end of the term, the remaining principal balance is due. At this time, the borrower has a choice to either refinance or pay off the remaining balance.
There are no penalties to paying off a balloon mortgage loan before it is due. Borrowers may refinance at any time during the life of the loan.
Balloon loans typically have either 5 or 7-year terms*. For example, a 7-year balloon mortgage with an interest rate of 7.5%* would feature this interest rate for the entire term. After 7 years*, the remaining loan balance would become due.
We've been helping members afford the home of their dreams for many years and we love what we do.
Barrett Financial Group, LLC | Corp NMLS #181106
www.nmlsconsumeraccess.org
CU Homeland Branch NMLS #2682480
5994 W. Las Positas Blvd, suite 109
Pleasanton, CA 94588
Phone: (800) 795-1333
info@cuhomeland.com
If you have a complaint please send an email to information@cuhomeland.com.
© 2025 All information contained herein is for informational purposes only and, while every effort has been made to insure accuracy, no guarantee is expressed or implied. Any programs shown do not demonstrate all options or pricing structures. Rates, terms, programs and underwriting policies subject to change without notice. This is not an offer to extend credit or a commitment to lend. All loans subject to underwriting approval. Some products may not be available in all states and restrictions apply. Equal Housing Opportunity. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act.
