A payment on the balance due of a note at the end of the loan term that is in excess of the regular payment is called a?

The term describing a payment on the balance due of a loan that is larger than the regular periodic payments is known as a balloon payment. This type of payment occurs typically at the end of a loan term and is used to pay off the remaining balance of the loan. Balloon payments are structured in a way that allows the borrower to make smaller payments throughout the loan, ultimately culminating in a larger, one-time payment. This structure can benefit borrowers who anticipate having more funds available at the loan's conclusion.

Understanding this term is crucial for anyone in the field of assessment and property valuation, as balloon payments can affect the financial assessment of a property. It indicates that while the borrower may initially have lower cash flow obligations, they should be prepared for a substantial payment at the end of the term. This contrasts with payment structures such as regular amortized payments, where the amounts remain consistent throughout the loan's life, thus not involving a significantly larger final payment.