Balloon Payment – What is Balloon Payment?

The Final lump-sub payment that is made at the maturity date of a loan.  When a debt is repaid in payments of varying amounts there are some colorful jargon terms used to describe the different loan structures.

The term balloon payment originated because if you hold back most of a debt and pay it only towards the end of the agreement, both those last payments and the total amount repaid are much larger.

2 thoughts on “Balloon Payment – What is Balloon Payment?

  1. Deepika sharma says:

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