This says "Balloon Payment. For a loan with a term of less than five years a payment schedule with regular periodic payments that when aggregated do not fully amortize the outstanding principal balance" This concerns me because we have a loan that we are looking to book which is a 15 year adjustable amortization schedule, but 3-year fixed. Our customer is wanting to come in at the end of the 3 years and refinance to hopefully get a better rate, terms, etc. Would we consider this a balloon, or simply a 15 year ARM with a 3 year fixed rate? Any help is appreciated.

If the loan is subject to HOEPA then you have an issue because you have a 3 year loan with a balloon payment.

What is the term of the original loan - 3 years or 15 years?

We dont know yet. We are weighing our options and going from there.