A loan which has a large payment due at the end of the loan period. Payments made during the loan term are typically smaller. An automobile lease is one form of a balloon note.
Periodic payments which are insufficient to complete the amortization of the face amount of the note prior to maturity. The principal amount known as a " Balloon Payment" is due at maturity.
A loan repaid in regularly scheduled payments with a typically larger balance due at maturity.
Loan which has a larger payment due at the end of the loan period than the payments made during the loan term.
A note calling for periodic payments which are insufficient to fully amortize the face amount of the note prior to maturity, so that a principal sum known as a "balloon" is due at the maturity.
A form of promissory note that calls for the minimum payment of principal and the payment of interest at regular intervals. This type of note requires a substantial final payment, which represents all the principal.
A note that calls for periodic payments that are insufficient to fully amortize the face amount (principal) of the note prior to maturity, so that a sum known as a "balloon" is due at maturity.
At the end of the loan term, some or all of the original loan amount is due and payable.
A partially amortized loan in which final payment is substantially larger than any of the previous payments on the loan.
A note calling for the principal sum, or a large portion thereof, (known as a "balloon") is due at maturity.
An amount left over after the term of the loan is past. The amount still owed on the property bought—a lump sum of money owed at the end of a loan.
A written promise to pay a balloon mortgage's full balance when it due.
At the end of the loan term, some of or the entire original loan amount is due and payable.
A long-term note or loan that has one large payment due upon maturity.
A promissory note with a final payment that is unusually large in comparison to the other payments, if any.
A form of promissory note requiring repayment of l... Add a comment
A partially amortized note.
A balloon note is a long-term loan, often a mortgage, that has one large payment (the balloon payment) due upon maturity. In addition, there may be additional smaller payments at regular intervals before and/or after the balloon payment. A balloon note will often have the advantage of very low interest payments, and smaller installments, thus requiring very little capital outlay during the life of the loan.