Real Estate Terms Glossary
What is a Balloon Payment?
A balloon payment refers to a significant sum of payment due at the maturity of the balloon loan like a mortgage or commercial loan. In retrospect, it is not so different from traditional bullet repayment. Since three are large payments involved at closure, financial institutions refer to the amount as the balloon payment.
Balloon Payment Examples
Examples of Balloon Payment include:
- Example 1: Extended maturity period
- Example 2: No overdependence on current property appreciation
- Example 3: Makes housing more affordable
Here is an article about balloon payment.
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