balloon payment

noun

US
: 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.

Examples of balloon payment in a Sentence

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That would have been a balloon payment designed to get Grimes to waive his no-trade clause. — Tony Jones, New York Times, 1 Oct. 2025 That balloon payment is only in the deal to artificially inflate his average salary. — Omar Kelly, Miami Herald, 3 June 2024 Additionally, homeowners potentially pay a balloon payment at the end of the loan. — Matthew O'Hara, Forbes, 19 Mar. 2025 Reverse mortgages require a balloon payment 30 days after the borrower sells the property, stops using it as their primary residence or dies. — Kelsey Neubauer, CNBC, 31 May 2025 After making a final $10 million balloon payment in 2029, the Broomfield Urban Renewal Authority will have spent a total of $135 million on the project. — John Aguilar, The Denver Post, 21 Jan. 2024 In San Francisco, the Hyatt Regency Downtown SOMA hotel’s owner missed a balloon payment on a $250 million loan in recent days. — George Avalos, The Mercury News, 9 Jan. 2024

Rhymes for balloon payment

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Browse Nearby Words

balloonist
balloon payment
balloon sail
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Cite this Entry

“Balloon payment.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/balloon%20payment. Accessed 7 Jul. 2026.

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