What Is Balloon Payment?
A balloon payment is a large lump sum due at the end of a loan term, after a period of smaller payments that don't fully pay off the balance — common in seller-financed deals and some short-term commercial loans.
A balloon payment is a large lump sum due at the end of a loan term, after a period of smaller payments that don't fully pay off the balance — common in seller-financed deals and some short-term commercial loans.