Suppose you borrow $200,000 to buy a house. Your monthly mortgage payments are based on a 30 year maturity; however, your mortgage's maturity is 5 years. Which of the following is probably NOT true: Your mortgage has a balloon payment You will need to anticipate either obtaining a new loan within five years, or selling your house to pay off the mortgage. You have no reason to worry: lenders always refinance loans with balloon payments. The interest rate you are paying on your 5 -year loan is probably much lower than the rate you would pay on a 30 year loan