Balloon Mortgage - A mortgage where during the amortization period, the note becomes due in full.  For example:  A 7-year Balloon mortgage with a 30 year amortization will be exactly like a regular 30 year mortgage.  However, after seven years, the note will become due in full, and the borrower must either pay off the loan completely, or refinance with another loan.  Balloon mortgages are ideal for people who plan on selling their house or refinancing within a given time period.