balloon payment

noun

1. a large payment that concludes a series of smaller payments, for example in order to repay a loan

Example Sentences

In some cases, drivers pay monthly fees before paying a so-called "balloon payment" at the end.

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The loans are considered safer because they are repaid in installments over several months instead of in one balloon payment.

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“It also alleviates the anxiety of having to figure out how to pay off a large balloon payment in the future.”

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Instead, the foundation acted as the lender, effectively extending a mortgage to Peart’s business for an $800,000 down payment, a $1.83 million balloon payment in July 2022 and interim interest payments of $11,000 a month.

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Martinez highlights the fact that CTC payments will be monthly, instead of some annual balloon payment, as a crucial distinction.

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