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Balloon Loans  
 
These are short-term fixed rate loans that begin with low, fixed payments, and end with a single large payment for all remaining principal at the end of 5, 7, or 10 years. A balloon mortgage might be a good idea if you only plan to live in your home for a few years, and want to keep your housing costs low. If you plan to remain in your house, you will probably have top refinance before the final payment comes due.
   
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