A balloon payment is a large, one-time payment made at the end of a loan term that is significantly larger than all previous payments. Often seen in both commercial and residential real estate financing, balloon payments also apply to business and personal loans.
A residential mortgage loan eligible for purchase by FNMA (Fannie Mae) or FHLMC (Freddie Mac). These loans typically offer lower interest rates and more favorable terms compared to nonconforming mortgage loans.
A conventional mortgage is a residential mortgage loan that is not insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA). It often refers to a mortgage with a fixed term and a fixed rate.
A Shared-Appreciation Mortgage (SAM) is a residential loan characterized by a fixed interest rate set below market rates. The lender is entitled to a specified share of the appreciation in property value over a specified time interval.
