balloon payment

(redirected from Balloon payments)
Also found in: Dictionary, Legal, Financial.

balloon payment,

n a final payment larger than the preceding payments when a debt is not fully amortized.
References in periodicals archive ?
To determine the additional enhancement needed to cover balloon payment loss, Standard & Poor's applied existing methodology employed in auto leasing transactions to determine the residual value exposure to the trust.
In response to feedback stating appraisals should be required only when there is unequal or graduating amortization, the FSA disagreed, stating that "an appraisal will always be necessary when restructuring with a balloon payment in order to provide some assurance that there is adequate security for the debt.
The SBA initially will open the program to businesses with immediate need due to impending balloon payments before Dec.
The coalition of airlines and the airline unions are concerned that under current regulations, the Pension Benefit Guaranty Corporation might be forced to demand these extraordinary balloon payments from virtually every airline that has a defined benefit plan no later than very early next year.
On average, the loans are amortized over 15 years with a balloon payment after eight to ten years.
66% by total loan balance includes balloon payments.
For covered transactions, additional disclosures are required and certain loan terms are prohibited, such as balloon payments for short-term loans and non-amortizing payment schedules.
The $10 million term loan and draws under the term loan are repayable pursuant to a 15 year term amortization from the date of draw with final balloon payments due at the end of the five year maturity of the credit facility.
The bill would also amend the TILA to restrict the terms of high-cost mortgage loans--for example, by prohibiting prepayment penalties, balloon payments, and negative amortization in such loans.
The available pro rata principal on the notes will comprise the remaining 50% of the available early pre-payment receipts and available scheduled balloon payments.
Full browser ?