With talk in the air about higher mortgage rates for 2018, there has been a growing interest in the balloon mortgage, a home loan product that's.

Balloon mortgages were once the leading type of mortgage in the U.S, but they are relatively rare today. This is due, in part, to the government’s support for the 30-year, fixed rate loan.

Press the Balloon Only button and you will see that you can pay off the mortgage with a balloon payment of $66,328.13. You are getting a $150,000 mortgage loan with a 3 year fixed interest rate.

Home Loan Interest Rates History 30-Year Fixed-Rate Mortgages Since 1971 – Freddie Mac – 30-Year Fixed-Rate Mortgages Since 1971. Skip to Content.. Renters, Buyers, & Owners. My Home by Freddie Mac Resources to help you rent, buy and own your home. Do we own your mortgage? Find out if Freddie Mac owns your loan using our secured lookup tool.. 5-Year Fixed-Rate Historic.

What is a Balloon Mortgage A balloon mortgage is a type of loan that requires a borrower to fulfill repayment in a lump sum. These types of mortgages are typically issued with a short-term duration.

A balloon mortgage is a loan that offers low initial monthly payments, and then a large portion of the principal is repaid in a lump sum at the end of the term. A balloon mortgage calculator helps you calculate your monthly mortgage payment, your balloon payment and the total amount of interest paid during the loan.

Interest Rate Housing Market Bay area housing expert gauges risks to the region's real. – While Carlisle said the Bay Area is somewhat more insulated from interest rate changes than other metro areas, a large increase in mortgage rates could still hit the housing market.

Although balloon loans are often easier to qualify for than a traditional 30 year mortgage loan, and charge lower interest rates, there is a catch. When a balloon mortgage ends, borrowers must payoff the remaining balance, usually by refinancing or selling the home.

Let’s look at an example of a balloon mortgage: 7-Year Balloon Mortgage Interest Rate: 5.00% amortization: 30 years loan amount: 0,000 In the above scenario, the monthly mortgage payment would be $1,342.05 per month, which is the same exact amount as a.

Here’s some of the details of the payments they could expect with a balloon mortgage as well as with 30- and 15-year fixed-rate home loans, as well as a 5/1 adjustable-rate mortgage.

 · An adjustable-rate mortgage (ARM) is often confused with a balloon loan. With an ARM, the borrower receives an introductory rate for a set amount of time, often for a period ranging from one to five years. At that point, the interest rate resets, and it may reset periodically until the loan is fully repaid.