How a Balloon Payment Mortgage Exposes Borrowers to a Rate Shock at Maturity

When a balloon mortgage matures, 80–90% of your original balance comes due at once—and refinancing at higher rates can raise your monthly payment by $600 or more.

When a balloon mortgage matures, 80–90% of your original balance comes due at once—and refinancing at higher rates can raise your monthly payment by $600 or more.