• Air payment is a type of loan structure where the final installment payment is intentionally larger than previous payments.
  • Air payments can be implemented for mortgage loans, auto loans or business loans.
  • Borrowers often have lower initial monthly payments on a hovercraft loan, and these types of loans are processed faster.
  • Estimated interest rate is usually higher on a balloon loan and often only borrowers with higher creditworthiness are considered.
  • The one-time payment may simply be the weighted amount of the payment, or, under an interest-only payment plan, may be the entire balance of principal.