Just call us Bond. Amortized bond.
Over 700 finance terms, Shmooped to perfection.
Like if you want to buy 99 red ones. Think about the shape of a balloon on a string on a still non-windy day. There's a long steady string - then this big fat thing. That's a balloon loan - if you owe one, you make a long steady stream of payments and then a big fat one at the end to finish things off or conclude your debt.