Definition of balloon payment
: 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.
Word by Word Definitions
: a nonporous bag of light material that can be inflated especially with air or gas: such as
: a bag that is filled with heated air or a gas lighter than air so as to rise and float in the atmosphere and that usually carries a suspended load (as a gondola with passengers)
: an inflatable bag (as of rubber or plastic) usually used as a toy or for decoration
: relating to, resembling, or suggesting a balloon
: being or having a final installment that is much larger than preceding ones in a term or installment note
: to swell or puff out : expand
: to ascend or travel in or as if in a balloon
: to increase rapidly
: the act of paying
: something that is paid : pay
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