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Wherever did I put that bill, anyway? The one I keep putting off paying? The one with interest accruing and a whopping balloon payment at the end? And another, and another? That’s the bill we’re.
A balloon auto loan or residual payment loan is a loan in which monthly payments are made for a certain amount of time, ending with a lump sum payment to the lender at the end of the loan term. With a balloon loan, the buyer pays interest on the vehicle over the loan term and the principal in a lump at the end of the term.
A balloon payment is a large payment due at the end of a balloon loan, such as a mortgage, a commercial loan, or another type of amortized loan. A balloon loan is typically for a relatively short term.
A balloon loan is a loan that you pay off with a single, final payment. Instead of a fixed monthly payment that gradually eliminates your debt, you typically make relatively small monthly payments. But those payments are not sufficient to pay off the loan before it comes due.
Balloon Payment. The final installment of a loan to be paid in an amount that is disproportionately larger than the regular installment. When a loan is made, repayment of the principal, which is the amount of the loan, plus the interest that is owed on it, is divided into installments due at regular intervals-for example, every month.
A balloon payment is a larger-than-usual one-time payment at the end of the loan term. If you have a mortgage with a balloon payment, your payments may be lower in the years before the balloon payment comes due, but you could owe a big amount at the end of the loan.
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"A balloon payment is a mechanism to try and make a car that is outside of your reach fit into your monthly budget – we recommend that clients actually not opt for balloon payments and rather buy more.
A day after gov. gray davis disclosed his plan to buy San DiegoGas & Electric Co.’s transmission system and “burst” theballoon payment owed by ratepayers, reactions to the proposed dealranged from.