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Posted On: October 6, 2010 by Scott Sagaria

Balloon Payments

A San Francisco bankruptcy attorney explains balloon payments.

There are some mortgage agreements that call for a large payment at the end of the mortgage term in order to fully pay off the balance. This results from the monthly payments not fully covering all that needs to be repaid. At the end of the term the difference is generally made up in the form of one large payment. The name comes from the size of the payment that is generally required, as it is often much larger than the regular monthly payments.

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