FindLaw Legal Dictionary
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: being or having a final installment that is much larger than preceding ones in an installment or term loan [a payment] NOTE: In contrast to an amortized loan, a balloon loan is generally repaid in periodic payments of interest and a large, lump sum payment of principal at the end of the term.
Source: Merriam-Webster's Dictionary of Law ©1996. Merriam-Webster, Incorporated. Published under license with Merriam-Webster, Incorporated.