Balloon Payment

B2 16+
Pronunciation Definitions Examples Grammatical Forms Origin and Evolution

Pronunciation: /bəˈlun ˈpeɪmənt/

Definitions of balloon payment

noun A sum of money that is much larger than the other scheduled payments in a loan agreement.

Example Sentences

A1 A balloon payment is a large one-time payment at the end of a loan term.

A2 When purchasing a car, some people choose a balloon payment option to lower their monthly payments.

B1 Before agreeing to a loan with a balloon payment, it's important to understand the financial implications.

B2 Balloon payments can be risky if you don't have a plan to cover the large sum at the end of the loan.

C1 Investors sometimes use balloon payments as a way to structure complex financial deals.

C2 The real estate developer negotiated a balloon payment as part of the financing agreement for the project.

Examples of balloon payment in a Sentence

formal The borrower will have to make a large balloon payment at the end of the loan term.

informal Watch out for that balloon payment at the end of the loan, it's a big one!

slang That balloon payment is gonna hit you like a ton of bricks!

figurative The balloon payment looming ahead feels like a heavy weight on my shoulders.

Grammatical Forms of balloon payment

plural

balloon payments

present tense

balloon payment

future tense

will balloon payment

perfect tense

has ballooned payment

continuous tense

is ballooning payment

singular

balloon payment

positive degree

more balloon payment

infinitive

to balloon payment

gerund

ballooning payment

participle

ballooned payment

Origin and Evolution of balloon payment

First Known Use: 1980 year
Language of Origin: English
Story behind the word: The term 'balloon payment' originated from the idea of a balloon being inflated with air, representing a large final payment at the end of a loan term.
Evolution of the word: Originally used in the context of real estate and finance, the term 'balloon payment' has evolved to be commonly used in various industries to describe a large, lump-sum payment due at the end of a loan term.