balloon payment

noun

US
: a final payment that is much larger than any earlier payment made on a debt
They agreed to pay $1,000 a year for five years and then make a balloon payment of $50,000 at the end of the term.

Examples of balloon payment in a Sentence

Recent Examples on the Web After making a final $10 million balloon payment in 2029, the Broomfield Urban Renewal Authority will have spent a total of $135 million on the project. John Aguilar, The Denver Post, 21 Jan. 2024 In San Francisco, the Hyatt Regency Downtown SOMA hotel’s owner missed a balloon payment on a $250 million loan in recent days. George Avalos, The Mercury News, 9 Jan. 2024 The principal amount borrowed would come due in a balloon payment on the loan’s maturity date, in December 2004. Jo Becker, New York Times, 25 Oct. 2023 The buyer makes smaller monthly payments leading up to the final balloon payment. Jim Slavik, Car and Driver, 21 June 2023

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'balloon payment.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

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Cite this Entry

“Balloon payment.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/balloon%20payment. Accessed 4 Mar. 2024.

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