What Does Balloon Payment Mean

A balloon loan is a type of loan that does not fully amortize over its term. Since it is not fully amortized, a balloon payment is required at the end of the term to repay the remaining principal.

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Business financing: Balloon loans can help with purchasing or expanding businesses.Especially for new businesses, cash is in short supply, and the company does not have any credit history (that’s why it’s important to build credit for your business).When buying a business, the seller or lenders might offer a balloon loan with relatively small payments, which allows the new business owner.

Balloon Payment | Definition of Balloon Payment by Merriam. – Balloon payment definition is – a final payment that is much larger than any earlier payment made on a debt. How to use balloon payment in a sentence.

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What Does A Balloon Payment Mean – Lake Water Real Estate – A balloon payment is a large, lump sum payment made either at specific intervals, or more commonly, at the end of a long-term balloon loan . Balloon payments are most commonly found in mortgages, but may be attached to auto and personal loans as well.

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How a Balloon Payment Works — The Motley Fool – How a Balloon Payment Works. If you want to keep your housing costs pared down to the bone, and you’re sure you can get out before the balloon payment comes due, a balloon mortgage may be a.