A balloon loan is a type of loan where you make small monthly payments for a set period of time, but you'll also have a large payment due at the end. It's called a "balloon" because that final payment is much bigger, like a balloon filled with air.
Sentences with «balloon loans»
The spreadsheet can be used for other types of balloon loan calculations as well. (vertex42.com)
With most balloon loans, a lump sum balloon payment is due 3 - 7 years after taking out the loan. (easychoicelenders.com)
Others, known as balloon loans, may let you make smaller payments, such as just paying the interest, and then require a lump sum payment at the end of the term. (quicken.com)