Balloon(redirected from balloon-like)
Also found in: Dictionary, Thesaurus, Medical, Legal, Encyclopedia, Wikipedia.
A loan or bond in which the borrower makes only interest payments for a set period of time. At the end of the term, the borrower repays the entire principal at once. A balloon loan may be useful when the borrower expects interest rates to be low at the end of the term, allowing him/her simply to refinance the loan. However, there is a high risk of default because not all borrowers actually have the cash to repay an entire loan in one payment. See also: Balloon Mortgage.
The loan balance remaining at the time the loan contract calls for full repayment.