A loan that consists of regular monthly payments with one large (balloon) payment at maturity.

Mortgage loan in which a larger final payment becomes due because the loan amount was not fully amortized.

Definition A long-term loan, often a mortgage, that has one large payment (the balloon payment) due upon maturity. A balloon loan will often have the advantage of very low interest payments, thus requ [..]

(sometimes known as a bullet loan) is a loan that requires a large sum of money to be paid when the loan term is complete. The full amount cannot be paid off in the timeframe given, so therefore the r [..]

Mortgage loan in which the remaining amount is fully due and payable at a specified, predetermined date. Balloon loans may have a better interest rate, but you will have to be prepared to pay the rema [..]

Loans that do not amortize completely over their own maturity term. The outstanding principal at maturity is repaid through a balloon payment.

A long-term loan in which the payments aren't set up to repay the loan in full by the end of the term. This loan has one large payment due when the loan matures. The type of loan often has a low [..]

is a loan with a large payment made near or at the end of the loan term.

A loan that comes due and must be paid off or refinanced because the final payment is much higher than the monthly payments.

A loan which creates smaller individual monthly payments, however there is usually a large payment due at the end of a loan. This type of loan will often have the advantage of very low interest paymen [..]

A loan that has level monthly payments that will amortize it over a stated term (e.g., 30 years) but that requires a lump sum payment of the entire principal balance at the end of a shorter term (e.g., 10 years).