Balloon Payment

The final lump sum payment that is made at the maturity date of a balloon mortgage.

The final lump sum payment due at the end of a balloon mortgage.

The final payment on a loan, when that payment is greater than the preceding installment payments and pays the loan in full.

A mortgage with periodic installments of principal and interest that do not fully amortize the loan. The balance of the mortgage is due in a lump sum at a specified date prior to the end of the amortization period.

A payment the borrower must make to the lender at the mortgage term’s end. This final payment is comparatively much larger than the payments that preceded it.