A loan that is paid back in a single lump sum payment at the due date of the loan is commonly called a(n)

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A loan that is paid back in a single lump sum payment at the due date of the loan is commonly called a balloon loan. This type of loan typically has lower monthly payments during the loan term, but a larger final payment, or balloon payment, at the end that must be paid in full to fully satisfy the loan.

A Loan That Is Paid Back in a Single Lump