We have changed our privacy policy. In addition, we use cookies on our website for various purposes. By continuing on our website, you consent to our use of cookies. You can learn about our practices by reading our privacy policy.
© 2016 Shmoop University, Inc. All rights reserved.
GO TO SAT PREP GO TO ACT PREP

Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Balloon Loan

Definition:

What happens when your sister gives you her balloon to hold at the fair.

Also, a loan where you make a steady stream of payments and a then a big, final payment. It's easy to remember this one: think of the long period of payments as the string on a balloon and the final payment as the big round balloon.