balloon payment


balloon payment
A contractually required loan payment, almost always the final payment, that is larger than the other contractually required, periodic loan payments. Results from the fact that required, periodic loan payments are too small to fully amortize the loan balance by the maturity date. American Banker Glossary
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The final (large) payment that repays all the remaining principal and interest of a partially amortized or unamortized loan. Bloomberg Financial Dictionary
See also: bullet

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balloon payment balloon payment payment

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balloon payment UK US noun [C] (also balloon) FINANCE
the final large sum of money paid at the end of a loan period: »

The problem with balloon payments is that they can tempt people to buy expensive cars they normally couldn't afford.


Financial and business terms. 2012.

Look at other dictionaries:

  • balloon payment — n. The large payment due at the end of the term of a balloon note. The Essential Law Dictionary. Sphinx Publishing, An imprint of Sourcebooks, Inc. Amy Hackney Blackwell. 2008. balloon payment A large final paymen …   Law dictionary

  • balloon payment — (izg. balȗn péjment) m DEFINICIJA bank. 1. pojam vezan uz umjetno dizanje cijena, u prvom redu vrijednosnih papira 2. precijenjeno plaćanje ili plaćanje iznad realne vrijednosti ETIMOLOGIJA engl …   Hrvatski jezični portal

  • Balloon payment — The phrase balloon payment or bullet payment refers to one of two ways for repaying a loan; the other type is called amortizing payment or Amortization (business) .With a balloon loan , a balloon payment is paid back when the loan comes to its… …   Wikipedia

  • Balloon Payment — An oversized payment due at the end of a mortgage, commercial loan or other amortized loan. Because the entire loan amount is not amortized over the life of the loan, the remaining balance is due as a final repayment to the lender. Balloon… …   Investment dictionary

  • balloon payment — The final payment of principal under a balloon note; commonly representing essentially the entire principal. See balloon mortgage balloon note …   Black's law dictionary

  • balloon payment — The final payment of principal under a balloon note; commonly representing essentially the entire principal. See balloon mortgage balloon note …   Black's law dictionary

  • balloon payment — /bə lu:n ˌpeɪmənt/ noun the last payment, usually much larger than the others, that is made when repaying a balloon loan …   Marketing dictionary in english

  • balloon payment — n. large lump sum paid as final payment due at the end of a loan …   English contemporary dictionary

  • Balloon Payment — Последний платеж, который гасит основной долг по ипотечному кредиту с единовременным погашением основного долга …   Ипотека. Словарь терминов

  • balloon payment — /bəˈlun peɪmənt/ (say buh loohn paymuhnt) noun a loan repayment, usually the final one, which is much larger than the other repayments, as part of a loan repayment scheme in which the borrower has low repayments in the early stages of the loan… …   Australian English dictionary