balloon payment

English

Etymology

Because the debt becomes inflated like a balloon as a result of the compound interest accumulating on the large sum.

Noun

balloon payment (plural balloon payments)

  1. An unusually large payment due at the end of a mortgage or loan.
  • bullet payment

See also
This article is issued from Wiktionary. The text is licensed under Creative Commons - Attribution - Sharealike. Additional terms may apply for the media files.