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What needs checking about a final balloon payment?
A smaller series of payments can leave a larger amount due at the end.
Identify that final obligation instead of treating the regular instalment as the complete commitment.
Ask what happens at maturity and whether any refinancing is only a possibility rather than a promise. The end payment needs its own scenario using the actual agreement, not assumed future credit.
Open the loan comparison guides
Definitions
- Total repayable
- Sum payable under the stated schedule and its assumptions; contingent charges and changes must be considered separately.
- Amount received
- Money actually made available to the borrower, which can differ from the stated loan amount if a charge is deducted.