Mortgage Dictionary
Select a term from the dropdown text box. The online mortgage
dictionary will display a definition, plus links to other
related web pages.
Select term:
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.