balloon payment


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balloon payment,

n a final payment larger than the preceding payments when a debt is not fully amortized.
References in periodicals archive ?
A Swift three-door, available from pounds 8,880 under the VAT-free scheme, is available with a deposit of pounds 1,575 followed by 36 monthly payments of pounds 159 and a final balloon payment of pounds 3,437.
This assists customers preferring a small deposit, with 36 monthly payments from just pounds 149 for Swift SZ2 and a final balloon payment to keep the car at the end of the agreement.
The remaining cost is spread over the term of the contract, or you can pay lower monthly rentals and a final balloon payment at the end of the term.
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.
Although the balloon payment in this transaction comes after five years, an even later balloon payment could work.
This scheme assists customers preferring a small deposit, with 36 monthly payments from just pounds 149 for Swift SZ2 and a final balloon payment to keep the car at the end of the agreement.
The latter can be accomplished either by making larger payments after the employee returns to work, or the employee can continue to pay the same amount as prior to the leave, then make a balloon payment at the end.
Luckily, the mortgage banker arranged a loan that paid off the balloon payment and refinanced what was still owed on the house.
Fitch also assessed borrower and balloon payment concentrations over the life of the transaction.
It means an Alto SZ3 is available for a deposit of pounds 149 followed by 36 monthly payments of pounds 149 with the option to pay a final balloon payment of pounds 2,742 at the end of the agreement to keep the car.
The IRS indicated that, as a matter of "administrative convenience" it would allow the rule of 78's for certain short-term consumer loans only when there was a self-amortizing loan that required level payments (at regular intervals at least annually) over a period not in excess of five years (with no balloon payment at the end of the loan term) and when the loan agreement between the borrower and the lender provided that interest was earned (or when the prepayment of the loan interest was treated as earned) in accordance with the rule of 78's method.
7%) as a result of the borrowers failure to make their balloon payment at maturity.