Balloon Payment

Business, Legal & Accounting Glossary

Definition: Balloon Payment


Balloon Payment

Quick Summary of Balloon Payment


The final payment on a loan which is significantly larger than those preceding it.




What is the dictionary definition of Balloon Payment?

Dictionary Definition


A large final payment due at the end of a loan, typically a home or car loan, to pay off the amount your monthly payments didn’t cover. Many US states prohibit balloon payments in loans for goods or services that are primarily for personal, family or household use, or require the lender to let you refinance the balloon payment before forcing collection.


Cite Term


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Page URL
https://payrollheaven.com/define/balloon-payment/
Modern Language Association (MLA):
Balloon Payment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 21, 2025 https://payrollheaven.com/define/balloon-payment/.
Chicago Manual of Style (CMS):
Balloon Payment. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/balloon-payment/ (accessed: March 21, 2025).
American Psychological Association (APA):
Balloon Payment. PayrollHeaven.com. Retrieved March 21, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/balloon-payment/

Definition Sources


Definitions for Balloon Payment are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 26th April, 2020 | 0 Views.