Balloon Product

SIRVA Mortgage Products — Balloon Loans

A balloon loan is amortized like a fixed-rate mortgage for a set number of years (usually five or seven), and then must be paid off in full in a single "balloon" payment. Balloon loans are popular with those expecting to sell or refinance their property within a definite period of time.

  • Interest rate is fixed for the life of the loan.
  • Principal & interest payments are based on a 30 year amortization term.
  • Outstanding principal balance (balloon payment) is due at the end of loan payment schedule (either 5 or 7 years).
  • Used when the possibility of relocation in the next 5-7 years is high.
  • Some balloon products allow the loan to be modified or extended to a market level fixed rate on the maturity date for the remaining term (23 or 25 years).