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balloon payment

British  

noun

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

"Collins English Dictionary — Complete & Unabridged" 2012 Digital Edition © William Collins Sons & Co. Ltd. 1979, 1986 © HarperCollins Publishers 1998, 2000, 2003, 2005, 2006, 2007, 2009, 2012

Example Sentences

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“If you have to pay a balloon payment at the end of the forbearance and you can’t afford that, that could put you in a much more difficult situation,” Cohen said.

From MarketWatch Oct. 31, 2025

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

From BBC Aug. 4, 2025

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

From New York Times Jun. 16, 2023

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

From Los Angeles Times Feb. 7, 2023

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.

From Washington Post Sep. 14, 2021

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