What is Balloon payment?

[Arunkumar.B]

Meaning :

Balloon payment is the lump sum payment which is attacked to a Loan, mortgage or a commercial loan. this payment is usually made towards end of the loan period. Balloon payment is higher than what you might be paying towards the loan on the monthly basis.

sentence form:

several loan types are basically temporary loans but require a BALLOON PAYMENT at a specified time

[nishat Parveen]

For eg,if a purchaser enters into seven years mortgage loan for buying home,his interest rate is in fixed monthly instalments.the baloon payment is at the end of 7 years the buyer can make the full payment in due or refinance the same or sell the home

[lavanya]

<p style=”text-align: left;”>Balloon payment can occur within a fixed- rate or adjustable- rate mortgage (ARM)</p>

[lavanya]

Balloon payment are often prepackaged in to what are called “two – step mortgages.

<span style=”line-height: 1.5;”>Balloon payments can occur within a fixed – rate or adjustable – rate mortgage (ARM)..</span>

[jeevithakomu]

for eg : suppose someone takes a mortgage for 417000 to avoid lengthy graphic with 360 payments for 30 yrs. mortgage.

Balloon payment is also termed as balloon loan.

[Author]

Posts