What Does Balloon Payment Mean

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A "balloon payment" is a final, usually quite large, payment on a loan. Essentially what you’re doing in such a loan is taking a (slightly) smaller monthly payment in exchange for having to come.

Definition of balloon payment: Loan installment (paid usually at the end of the loan. A balloon payment is required when the previous installments did not.

Definition of BALLOON PAYMENT: A payment made on a loan that is highe than the ones before it. It is done at the end of the period. It pays what is left after the last payment.

Balloon Payment: read the definition of Balloon Payment and 8,000+ other financial and investing terms in the NASDAQ.com Financial Glossary.

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Definition: Balloon payment is the lump sum payment which is attached to a loan, mortgage, or a commercial loan. This payment is usually made towards the end of the loan period. Balloon payment is higher than what you might be paying towards the loan on a monthly basis.

 · A balloon auto loan or residual payment loan is a loan in which monthly payments are made for a certain amount of time, ending with a lump sum payment to the lender at the end of the loan term. With a balloon loan, the buyer pays interest on the vehicle over the loan term and the principal in a lump at the end of the term.

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Quite simply, a balloon payment is a lump sum payment that is attached to a loan. The payment, which has a higher value than your regular repayment charges, can be applied at regular intervals or, as is more usual, at the end of a loan period.

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Definition of balloon payment in the Definitions.net dictionary. Meaning of balloon payment. What does balloon payment mean? Information and translations of balloon payment in the most comprehensive dictionary definitions resource on the web.