A balloon payment is a large, one-time payment made at the end of a loan term that is significantly larger than all previous payments. Often seen in both commercial and residential real estate financing, balloon payments also apply to business and personal loans.
A balloon payment is the final payment on a loan when that payment is significantly greater than the preceding installment payments and pays off the loan in full.
A balloon payment is a large sum repaid as an irregular installment in loan repayment, often seen as the final payment in loan structures where it is significantly larger than previous regular payments.
An interest-only loan is a type of loan where the borrower is required to pay only the interest for some period of the term, usually until the loan reaches maturity. At the end of that period, the principal is due in full. Unlike traditional loans, it does not require regular principal amortization during the term.
