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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Balloon Loan


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.