Balloon Mortgage Defined
A balloon mortgage is a mortgage that has a payment amortized over a long term but the balance is due in a much shorter time period. For example, a 5 or 7 year balloon mortgage would mean the payment is amortized over 30 years but the loan is due in 5 or [...]

Float Defined
A mortgage applicant with a floating rate is subject to the up and down movement in interest rates everyday until the float is corrected. It is said the applicant is at “interest rate risk”.
To correct being at float, one must lock the rate. Locking is separate from the application. [...]