Dictionary of Real Estate Terms: partially amortized loan
partially amortized loan
one that requires some payments toward principal but does not fully retire the debt, thereby requiring a balloon payment.
Example: A30-year amortization schedule is provided for a loan that balloons in 10 years. Originally $100,000 of principal at 8% interest, this partially amortized loan balance will be reduced to $87,724 when it matures in 10 years.
