Balloon


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Balloon Loan

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.

Balloon

The loan balance remaining at the time the loan contract calls for full repayment.

References in classic literature ?
One single gale such as now befriends us - let such a tempest whirl forward a balloon for four or five days(these gales often last longer) and the voyager will be easily borne, in that period, from coast to coast.
Crossing the ocean in a balloon is not so difficult a feat after all.
Just before day, we were all somewhat alarmed at some odd noises and concussions in the balloon, accompanied with the apparent rapid subsidence of the whole machine.
We have crossed the Atlantic - fairly and easily crossed it in a balloon !
The balloon was brought over the beach (the tide being out and the sand hard, smooth, and admirably adapted for a descent,) and the grapnel let go, which took firm hold at once.
The balloon rolled nauseatingly, and the car pitched.
Everybody now was aware of the balloon. Everybody was either trying to dodge the grapnel or catch the trail rope.
A hoarse shout of disgust greeted the descent of the grapnel-rope and the swift leap of the balloon, and something--he fancied afterwards it was a turnip--whizzed by his head.
When he got used to it, he found this rotation of the balloon rather convenient; it saved moving about in the car.
On the whole a guttural variant of English prevailed in the sentences that alighted upon the balloon; chiefly he was told to "gome down or you will be shot."
And when in the confusion of the moment he dropped a bag of ballast, the Germans, very politely but firmly overcame his scruples by shooting his balloon again twice.
Vast multitudes of men went to and fro, many in white and drab fatigue uniforms busy about the balloons, others drilling in sensible drab.