   
|
|
|
|
Balloon Payment
|
A balloon payment is the final installment payment for what is commonly known as a balloon, or bullet loan. A balloon loan is a loan that has not been fully serviced by monthly loan payments and so has a large final payment -- the balloon payment -- due at maturity. A balloon payment may be due on any partially amortized or unamortized loan. The primary advantage of a balloon loan is the smaller monthly payments prior to the final balloon payment. The primary disadvantage to a balloon loan is making provisions for the balloon payment which is due at maturity. In some states lenders are required to allow borrowers to refinance a loan prior to the balloon payment coming due.
Rate this balloon payment definition...
|
|
Where is the market headed? The answer may surprise you. Find out
right now with the exclusive & Barron's recommended charts of Chart of the Day.
|
Popular Terms: EBITDA, liquidity ratio, 401a, deferred tax, command economy, 144a, per diem, margin rate, deferred revenue, required rate of return, cancelled check, open position, stock split, ex-dividend, implied volatility, in escrow, irrevocable trust, limit order, quality assurance, risk management, 1035 exchange, Key Rate Duration, class C shares, current ratio, Zero Cost Collar, 1031 exchange, wholly-owned subsidiary, VIX, reverse mortgage, retained earnings, phantom income, option premium, minority interest, labor relations, ex-dividend date, covered put, real GDP, LIBOR, inflation, dividends payable, diluted share, debt service coverage, balance sheet, APR, equities, average price per share, FICO score, FTSE, stock market close
|
|
|
|
