balloon payment |
|
Definition
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 previous installments did not extinguish the loan, either intentionally or due to an error or late payments.
email to a friend
print this definition
cite this definition
link to this page
balloon payment is in the Accounting & Auditing and Banking, Commerce & Finance subjects.
balloon payment appears in the definitions of the following terms: synthetic lease, fully amortizing loan, term mortgage, balloon loan, price level adjusted mortgage (PLAM) and renegotiable rate loan
This content can be found on the following page:
http://www.businessdictionary.com/definition/balloon-payment.html