{"id":48008,"date":"2023-12-13T14:48:33","date_gmt":"2023-12-13T22:48:33","guid":{"rendered":"https:\/\/financer.com\/?p=48008"},"modified":"2024-05-06T07:54:38","modified_gmt":"2024-05-06T14:54:38","slug":"balloon-payment","status":"publish","type":"page","link":"https:\/\/financer.com\/loans\/glossary\/balloon-payment\/","title":{"rendered":"What is a Balloon Payment?"},"content":{"rendered":"\n
A balloon payment is a large final payment that is due at the end of a loan, after lower regular payments have been made during the loan term. This final “balloon” payment is much bigger than the ongoing payments and pays off the remaining principal on the loan.<\/p>\n\n\n\n
Balloon payments are most commonly associated with balloon mortgages. Other types of loans that may have balloon payments include auto loans, commercial real estate loans, and business loans<\/a>.<\/p>\n\n\n For Example:<\/strong><\/p>\n\n\n\n To better grasp balloon payments, it helps to look at specific examples. Here are some sample balloon loan terms and what the balloon payment would be:<\/p>\n\n\n\nBalloon Payments In a Nutshell:<\/h3>
Basic Structure<\/h4>\n
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Calculation of Balloon Payments<\/h4>\n
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Refinancing Option<\/h4>\n
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Risk Considerations<\/h4>\n
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Applicability<\/h4>\n
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Preparing for a Balloon Payment<\/h4>\n
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