Loan Estimate – Balloon Payment Sample (H-24E)

Updated 2026-05-17

The Loan Estimate – Balloon Payment Sample (Form H-24E) is a model form provided by the CFPB to illustrate the specific disclosure requirements for loans with a Balloon Payment under the TILA RESPA Integrated Disclosure (TRID) rule. This form integrates disclosures mandated by the Truth in Lending Act (TILA) and the Real Estate Settlement Procedures Act (RESPA).

Key Disclosure Requirements for Balloon Payments

A Balloon Payment is defined as a payment that is more than two times a regular periodic payment. When a loan includes a balloon payment, the Loan Estimate (LE) and Good Faith Estimate (GFE) must clearly disclose this feature:

• "Does the loan have these features?" Section: The Loan Estimate must show "YES" next to "Balloon Payment" if applicable.
• Amount and Due Date: The maximum amount of the balloon payment and its specific due date must be explicitly stated. For example, "You will have to pay $149,263 at the end of year 7."
• Regulatory Basis: These disclosures are mandated by 12 CFR § 1026.37(b)(5) and § 1026.37(b)(7)(ii) of Truth in Lending Act (TILA) and Regulation Z.

Presentation on the Loan Estimate

• Loan Terms Section: For a fixed-rate loan with a balloon payment, the Loan Terms section typically indicates "NO" for whether the loan amount, interest rate, and monthly principal & interest payment can increase after consummation.
• Projected Payments Section: This section provides a detailed breakdown of estimated monthly payments, clearly distinguishing regular periodic payments from the final, larger balloon payment.
• Payment Feature Disclosure: The balloon payment is considered a payment feature that alters the periodic payment, and its duration must also be disclosed.

Example Scenario (H-24E Sample)

The H-24E sample typically describes a loan with a fixed interest rate over a specific term (e.g., 7 years) culminating in a substantial balloon payment at the end of the term. For instance, an initial estimated total monthly payment for years 1-7, followed by a final balloon payment of $149,263 at the end of year 7.

Regulatory Context

The requirements for disclosing balloon payments on the Loan Estimate are detailed in 12 CFR § 1026.37 of Truth in Lending Act (TILA) and Regulation Z, which is part of the broader framework established by the 2018 TILA RESPA Rule.

Comparison with Other Loan Estimate Forms

The H-24E sample specifically addresses loans with a balloon payment, distinguishing it from other Loan Estimate samples like H-24B (for a fixed-rate mortgage without a balloon payment but potentially with a Prepayment Penalty) or H-24C (for an Adjustable-Rate Mortgage (ARM)). The disclosure of a Prepayment Penalty is handled similarly under the "Does the loan have these features?" section.