What is balloon payment?
The lump-sum loan balance still outstanding at maturity when a loan amortizes over a longer period than its term. The borrower must refinance, sell, or otherwise repay it.
Where you will use it: this term comes up in the Real Estate Finance course, and the full course glossary collects every term in one place.
Related terms
From the free Real Estate Finance course by Devon Coombs, CPA, MBA.