Rollover Mortgage Definition
A short term loan in which the unpaid balance is refinanced every few years at the most recent rate. Advantage of the rollover mortgage is that instead of being locked in to a 15 or 30 year loan with the same interest it will be refinanced. This can be good for the borrower if the interest rates are falling, but it can be a great risk if interest rates are rising. In the latter case the monthly payments will increase.