What is the term for a payment at the end of a loan period that includes the total outstanding balance?

The term for a payment at the end of a loan period that includes the total outstanding balance is known as a balloon payment. This type of payment structure is common in certain types of loans where the borrower pays smaller installments throughout the life of the loan, but the majority of the balance is due in one lump sum at the end of the loan term.

This situation typically arises in loans with short-term fixed rates or flexible repayment structures. Thus, the borrower enjoys lower monthly payments during the loan period, but they must prepare for a larger payment when the loan matures.

On the other hand, an installment payment refers to regular, scheduled payments made over time which include both principal and interest, without accumulating a lump sum at the end. An amortized payment is a regular payment that covers both principal and interest over the loan's life, leading to the loan being paid off in full by the end of the term. Finally, a down payment is the initial upfront payment made when purchasing an asset, which is separate from loan repayments.