balloon

Definition of "balloon"
  1. It refers to the situation in an installment or term loan where the final payment is significantly higher than the preceding payments
How to use "balloon" in a sentence
  1. The real estate company set up the mortgage to include a balloon payment at the end.
  2. The auto loan contract included a balloon payment after the regular monthly installments.
  3. The business owner was caught off-guard by the balloon payment due at the end of her equipment loan term.

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