ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A balloon payment is a larger-than-usual one-time payment at the end of the loan term. If you have a mortgage with a balloon payment, your payments may be lower in the years before the balloon payment comes due, but you could owe a big amount at the end of the loan.

Detailed explanation-2: -Description: It is irr. Balloon Mortgage. : A balloon mortgage is a financing mechanism where the payments are not fully amortized over the te. Bridge Loan. Bridge loan is a type of gap financing arrangement wherein the borrower can get access to short-term.

Detailed explanation-3: -The payment on a balloon mortgage loan is typically due on the loan maturity date-in other words, the date the mortgage becomes due in full. So, in the case of a five-year balloon mortgage, a balloon payment is due at the end of the five-year term and pays off the remaining loan balance.

Detailed explanation-4: -Definition: Balloon payment is the lump sum payment which is attached to a loan, mortgage, or a commercial loan. This payment is usually made towards the end of the loan period. Balloon payment is higher than what you might be paying towards the loan on a monthly basis.