Balloon-payment definition

A final loan payment that is significantly larger than the payments preceding it.
noun
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See payment.
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An unusually large payment due at the end of a mortgage or loan.
noun
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Other Word Forms

Noun

Singular:
balloon-payment
Plural:
balloon-payments

Origin of balloon-payment

  • Because the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

    From Wiktionary