Balloon


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.

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Term

The period used to calculate the monthly mortgage payment. The term is usually but not always the same as the maturity, which is the period over wh ...

Bullet Loan

Intermediate debt (5 to 10 years) without periodic payments but the entire amount (balloon payment) is due at the maturity date. If full payment is no ...

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Popular Real Estate FAQ

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A type of mortgage in which the loan amount is amortized over the full length of the loan (usually 30 yrs), but the loan actually comes due after a fe ...

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People finance to obtain a new loan in order to pay off the existing mortgage or to gain access to the existing equity in the home. ...

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An APR stands for an ANNUAL PERCENTAGE RATE. This rate includes the costs of any points paid, mortgage insurance, and other costs. ...

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A seller disclosure is a form required by most states; the seller uses this form to disclose any known defects of the home. ...

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