Definition of "Balloon"

(1) Type of loan where the final payment is substantially greater than the previous payments; also termed partially amortized loan. A debt agreement might stipulate a balloon payment when future refinancing is expected. (2) Last lease payment for a lease asset. It includes the residual value of the asset, which is often greater than previous rental payments made during the lease period.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Terms

I am the person. The person himself/herself. The actual person. ...

Every borrower has his own definition of amortization schedule in mind. An amortization schedule is a table that reveals how the debt is going to be paid back and at what cost. For most ...

Determining the measurements of a specific location. ...

A lease granted for the right to explore for and recover oil and gas on a specific parcel of property. The terms of an oil and gas lease specify the length of time of the contract, the ...

Eight-by-four sheet of material attached to a wall's studs. It can be made attractive by wallpapering or painting. ...

Property tax that varies in rate depending on the zoning classification (use) of the property. ...

Solid rock that lies underneath soil providing a foundation on which to construct a building. ...

Some plausible, but not completely clear-cut indication of ownership rights. It supplements a claim to title to property, but does not actually establish it. ...

Organization dedicated to creating and furnishing the most timely and effective advice and direction for the professional management and financing of facilities and services for ...

Popular Real Estate Questions