This refers to the principal balance due at the maturity of a mortgage. It is referred to as a ‘balloon’ because the payment, for non-amortizing loans, is typically large in size and the entire payment is due on the maturity date of the investment.
This refers to the principal balance due at the maturity of a mortgage. It is referred to as a ‘balloon’ because the payment, for non-amortizing loans, is typically large in size and the entire payment is due on the maturity date of the investment.