balloon payment

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Balloon Payment

The final (large) payment that repays all the remaining principal and interest of a partially amortized or unamortized loan. See: Bullet.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

balloon payment

A final loan payment that is significantly larger than the payments preceding it. For example, a bond issuer may redeem 3% of the original issue each year for 20 years and then retire the remaining 40% in the year of maturity.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

balloon payment

The full principal amount due at the end of a balloon mortgage.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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References in periodicals archive ?
One addresses balloon payments; the other addresses single-premium credit insurance.
Currently, balloon payments are prohibited for HOEPA-covered loans having maturities of less than five years.
For example, a consumer may not understand that a loan with affordable monthly payments will not amortize the principal or that the consumer may have to refinance a balloon payment at additional cost.
Statements to the Congress
The report discusses possible ways to control flipping, including additional limitations on balloon payments and the ability to finance closing costs for loans subject to the HOEPA.
The Board and HUD join in two recommendations to protect consumers who obtain HOEPA-covered loans; one addresses balloon payments, and the other addresses single-premium credit insurance.
Statements to the Congress
Of all of the provisions in section 2 of the bill, the substantive limitations on balloon payments, negative amortization, and prepayment penalties seem particularly focused on the problems associated with high-cost mortgages.
When the "dust settles," these borrowers may find that they have paid a high number of loan origination and broker points (often financed in the borrowed amount) and have agreed to a loan with an interest rate at the highest levels in the market--sometimes with monthly payments that even exceed their monthly income and often with a balloon payment due.
Statements to the Congress
The balloon payment portion makes up 38% of the initial underlying portfolio.
Fitch Ratings assigns final ratings to Driver Japan

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