A Balloon payment is a single, lump sum payment made at maturity of a partially amortized mortgage to pay off the debt in full.

This payment comes at the end of a balloon mortgage term. The amount can either be made in cash or refinanced with another lender or the same, for an additional term or mortgage.

A partially amortized mortgage must be clearly identified as such on the face of the mortgage, with the amount of the final balloon payment disclosed. Balloon payment disclosures vary per state.