Balloon payment
A balloon payment is a lump sum payment. A balloon payment comes into being if you take a home equity line of credit and you have made partial payments on the amount due. When your home equity line of credit expires, you owe a 'balloon' payment to clear the outstanding balance. A balloon payment may run into thousands of dollars. To make the balloon payment you may have to sell your home or take another loan. It is a situation that should be avoided at any cost.
posted by Ranjana @ 11:19 PM
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