Definition Balloon Payment

Balloon payment financial definition of balloon payment – balloon payment. A final loan payment that is significantly larger than the payments preceding it. For example, a bond issuer may redeem 3% of the original issue each year for 20 years and then retire the remaining 40% in the year of maturity.

What Does Loan Term Mean A term loan is a loan from a bank for a specific amount that has a specified repayment schedule and either a fixed or floating interest rate. A term loan is often appropriate for an established.

A balloon loan is a type of loan that does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal.

Balloon Payment Definition: The Balloon payment is the final amount paid against the loan and is much higher than the regular monthly installments. simply, the lump sum amount attached to a loan which has to be paid (generally at the end of the loan period) to extinguish the loan is called as a balloon payment.

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.

balloon payment: Loan installment (paid usually at the end of the loan period) that is much larger than the other installments. A balloon payment is required when the.

Left out would be payment-option loans, interest-only loans, balloon-payment loans and the like.A narrow QRM definition could be restricted to just one type of mortgage, say, a classic 30-year.

A balloon payment is a large payment made at or near the end of a loan term. How It Works Unlike a loan whose total cost (interest and principal ) is amortized — that is, paid incrementally during the life of the loan — a balloon loan ‘s principal is paid in one sum at the end of the term.

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Definition: A loan that requires a single, usually final, payment that is much greater than the payment preceding it Though balloon loans are usually written under–and called by–another name, you.

With Reverso you can find the English translation, definition or synonym for balloon payment and thousands of other words. You can complete the translation of balloon payment given by the english-spanish collins dictionary with other dictionaries such as: Wikipedia, Lexilogos, Larousse dictionary, Le Robert, Oxford, Grvisse