balloon payment

English

Etymology

So called because the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

Noun

balloon payment (plural balloon payments)

1. (business, real estate) An unusually large payment due at the end of the term of a loan agreement.

   Synonym: lump sum

Related terms

• bullet payment

Translations

Translations

• Finnish: könttäsumma (fi)
• Polish: rata balonowa f

See also

• amortization