What is a balloon payment?

Author
MyProperty Namibia
Namibia's #1 independent property portal

A balloon payment is a large payment due at the end of a balloon loan, such as a mortgage, commercial loan, or other amortized loan.

A balloon loan typically features a relatively short term, and only a portion of the loan's principal balance is amortized over the term. At the end of the term, the remaining balance is due as a final repayment.

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