Balloon Payment

A balloon payment is a single large payment due at the end of a loan term, after a series of smaller periodic payments. Balloon loans typically have low or interest-only monthly payments during the term, with the full principal due at maturity.

Balloon structures are common in commercial real estate, bridge loans, and interest-only mortgages. They're attractive when you expect to refinance, sell, or generate a liquidity event before maturity — but risky if those expectations don't materialize.

Why it matters for Milo customers

Milo's crypto-backed loans (not mortgages) typically use balloon structures: low or no monthly payments during a 12-month term, with principal due at maturity. The standard playbook: borrow for short-term liquidity, then repay the balloon from rental income, refinance proceeds, or eventual crypto appreciation.

---