balloon payment
Large concluding remittance
A balloon payment is a large lump sum due at the end of a loan, after a series of smaller periodic payments.
The structure keeps monthly payments low but requires the borrower to pay off—or refinance—a substantial remaining balance: The five-year loan had manageable payments but ended with a $50,000 balloon payment.
structure
Entire amount at once
- payoffCulminating benefit received
- settlementResolved dispute or colony
- principal balanceRemaining loan amount owed
- residualWhat remains afterward
lending
Secured home loan
- auto loanCredit for vehicle purchase
- commercial loanFunds lent to businesses
- refinanceObtain new loan terms
- loan termDuration of borrowed money
borrower · lender · financing · underwriting · amortization · interest rate · adjustable-rate · fixed-rate
deadline
When debt must repay
- due dateWhen payment is required
- countdownBackward enumeration to zero
- crunch timeHigh-pressure final stretch
- expirationEnd of validity
risk
Preset standard option
- foreclosureLender seizes mortgaged property
- underwaterBelow the surface
- financial burdenCostly ongoing obligation
- credit riskPotential for borrower nonpayment
lump sum
Entire amount at once
- payoffCulminating benefit received
- settlementResolved dispute or colony
- principal balanceRemaining loan amount owed
mortgage
Secured home loan
- auto loanCredit for vehicle purchase
- commercial loanFunds lent to businesses
- refinanceObtain new loan terms
loan term · borrower · lender · financing · underwriting · amortization · interest rate · adjustable-rate · fixed-rate · credit score
maturity date
When debt must repay
- due dateWhen payment is required
- countdownBackward enumeration to zero
- crunch timeHigh-pressure final stretch
default
Preset standard option
- foreclosureLender seizes mortgaged property
- underwaterBelow the surface
- financial burdenCostly ongoing obligation
- debtdebt, creditor, owe, debtor, lender
- money termscash, credit, debt, income, wages
- paymentscredit cards, debit cards, credit card, debit card, paycheck
- mortgagesfixed-rate mortgage, mortgage broker, adjustable-rate mortgage, mortgage insurance, mortgage deed
- business debtbank loan, commercial loan, credit line, line of credit, loan
- credit termsloans, installment loan, credit limits, credit cards, interest rate