Dictionary of Banking Terms: 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.
Dictionary of Business Terms: balloon payment
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.
Dictionary of Real Estate Terms: balloon payment
balloon payment
the final payment on a loan, when that payment is greater than the preceding installment payments and pays the loan in full.
