balloon payment

British  

noun

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

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Example Sentences

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

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

From Seattle Times

The raised money, she said, will help her to satisfy terms of a balloon payment for a loan that is due Feb. 1 on her ranch in Wilton, about 20 miles southeast of Sacramento.

From Washington Post

All 18 loans, for example, allow Kushner Companies to pay only interest for the full 10-year term, thus deferring all principal payments to a balloon payment at the end.

From Salon

Meanwhile, critics have warned that the buyouts could pose additional financial risk, since they come with a delayed balloon payment.

From Los Angeles Times