A balloon mortgage can help a homebuyer when interest rates are high but are expected to come down in the near future.

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A balloon mortgage typically has a lower interest rate for a short term, then a large final payment (the "balloon") at the end of the loan term. This can help a homebuyer during a period of high interest rates, as they can secure a lower rate for the short term and refinance or sell the property before the balloon payment comes due. This strategy is most effective when interest rates are expected to decrease in the future.

A Balloon Mortgage Can Help a Homebuyer When Interest Rates