# What Does A Balloon Payment Mean

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Balloon payments and resale value. There are a range of factors to consider when choosing a balloon payment, but one of the most important is the expected value of your vehicle at the end of the loan term. Ideally, your balloon should be less than or equal to the value of the vehicle when it’s due.

The good news is the answer to your question in probably YES.. In your case, that would mean changing the term so that the balloon payment.

A balloon payment is a large payment due at the end of a balloon loan, such as a mortgage, commercial loan or other amortized loan. A balloon loan typically features a relatively short term, and only a portion of the loan’s principal balance is amortized over the term. At the end of the term, the remaining balance is due as a final repayment.

A balloon payment is a large lump sum that is due all at once, whether there is one balloon payment made at the end of the balloon loan or several balloon payments that are spaced out over set intervals of.

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Balloon Payment. The earlier installments are usually payment of interest and a minimal amount of principal, while the later installments are primarily principal. When a balloon payment is provided in a loan agreement there are a number of installments for the same small amount prior to the balloon payment.

A balloon payment is an unusually large payment due at the end of a mortgage or loan. Since the payments are not spread out, this large sum is the final repayment to the lender. Holding back most of a debt and paying it only towards the end of the agreement makes both those last payments and the total amount repaid much larger.

Balloon payment definition: a large payment that concludes a series of smaller payments, for example in order to. | Meaning, pronunciation, translations and examples

A balloon payment is a large lump sum that is due all at once, whether there is one balloon payment made at the end of the balloon loan or several balloon payments that are spaced out over set intervals of. A minimum payment. that means. Obviously, you can’t keep adding to your debt forever.

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