balloon payment


A large, lump-sum payment scheduled at the end of a series of considerably smaller periodic payments. A balloon payment may be included in the payment schedule for a loan, lease, or other stream of payments.

Use balloon payment in a sentence

You may want to make a balloon payment instead of a lot of smaller ones if you think that will be easier.

​ Was this Helpful? YES  NO 11 people found this helpful.

Homer was able to afford the monthly and weekly payments on the car because he deferred much of the cost into a balloon payment.

​ Was this Helpful? YES  NO 10 people found this helpful.

It is fast approaching that i will owe him a considerable amount more than the usual amount payed, as are the terms of the balloon payment schedule we agreed upon.

​ Was this Helpful? YES  NO 4 people found this helpful.

Show more usage examples...

Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
creative financing balloon mortgage