CalculateRealEstateROI

Cash Flow

Balloon Payment

Large lump-sum due at maturity of a loan with payments amortized over a longer schedule.

Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice

Plain-English explanation

Common in commercial loans — pay as if 30-year but owe full balance in 5-10.

Examples

  • 5/25 loan: payments amortize 25yr but balance due at year 5.

Common mistakes

  • Holding past balloon without refinance plan in market downturns.

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