balloon payment

Definition of "balloon payment"
  1. A sizable final installment at the termination of a loan, typically for amenities such as a residence or vehicle, that serves to settle the outstanding sum not covered by regular monthly installments
How to use "balloon payment" in a sentence
  1. Thomas was relieved when he made his last balloon payment and finally owned his car outright.
  2. The balloon payment for their home loan was due in five years, making them save aggressively.
  3. She struggled to refinance her loan when she realized she couldn't afford the balloon payment due next month.

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