A mortgage that has amortized payments for a period of years and then the remaining principal balance comes due at the end of the specified period. The most common types are the 7/23, 5/25, and 30/15.
A mortgage in which monthly installments are not large enough to repay the loan by the end of the term. As a result, the final payment due is the lump sum of the remaining principal. It is common for these loans to be rather short terms, less than 10 years.
usually a short-term mortgage with regular monthly payments that are insufficient to pay off the loan at the end of the term. A lump sum payment (balloon payment) is then required at the maturity date.
A balloon payment mortgage is a mortgage which does not fully amortize over the term of the note, thus leaving a balance due at maturity.Wiedemer, John P, Real Estate Finance, 8th Edition, p 109-110 The final payment is called a balloon payment because of its large size.