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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Balloon Loan

Definition:

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.

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