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Business Definition for: balloon payment
balloon payment
final lump-sum payment of unpaid principal remaining at the end of a balloon mortgage and in certain types of leases. The extra payment extinguishes the debt.
balloon payment
final payment on a loan when that payment is greater than the preceding installment payments and pays the loan in full. For example, a debt requires interest-only payments annually for five years, at the end of which time the principal balance (a balloon payment) is due.
balloon payment
the final payment on a loan, when that payment is greater than the preceding installment payments and pays the loan in full.
Example: A debt requires interest-only payments annually for 5 years, at the end of which time the principal balance (a balloon payment) is due, as seen in Figure 20.
Copyright c 2006, 2000, 1997, 1993, 1990 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2007, 2000, 1997, 1987, by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
Copyright © 2004, 2000, 1997, 1993, 1987, 1984 by Barron's Educational Series, Inc. Reprinted by arrangement with Publisher.
