Balloon Mortgage
A Balloon Mortgage is usually a short-term fixed-rate loan which involves small payments for a certain period of time and one large payment for the remaining amount of the principal at a contractually specified time. Many people elect to get a balloon mortgage who have the intention of refinancing at a later date.
Balloon payment
A balloon payment is the final lump sum payment that is made at the maturity date of a balloon mortgage. To make a balloon payment, many borrowers might refinance or sell another asset to be able to make such a payment.