Mortgage Dictionary: Definition of Balloon ARM
Here is the definition for 'Balloon ARM'. To show a different definition, select a term from the dropdown text box. The online mortgage glossary will display a definition, plus links to related information.
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Balloon ARM
A balloon ARM is a combination of a
balloon loan
and an
adjustable-rate mortgage
. Like an adjustable-rate
mortgage, payments can vary from one payment period to
another; and like a balloon loan, the final payment is
due as a lump sum before the end of the loan term.
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