Lending Basics
Balloon Payment
A large lump-sum payment due at the end of a loan term that pays off the remaining principal balance. Balloon loans have lower monthly payments but require the borrower to refinance or have cash available at maturity.
Lending Basics
A large lump-sum payment due at the end of a loan term that pays off the remaining principal balance. Balloon loans have lower monthly payments but require the borrower to refinance or have cash available at maturity.