Dictionary of Accounting Terms: balloon
balloon
last loan payment when it is significantly more than the prior payments; also called partially amortized loans.For example, a debt agreement might provide for a balloon payment when future refinancing is anticipated.
Dictionary of Finance and Investment Terms: balloon
balloon
final payment on a debt that is substantially larger than the preceding payments. Loans or mortgages are structured with balloon payments when some projected event is expected to provide extra cash flow or when refinancing is anticipated. Balloon loans are sometimes called partially amortized loans.
