What do you call the final lump sum payment due at the end of a balloon mortgage?

The term that refers to the final lump sum payment due at the end of a balloon mortgage is known as a balloon payment. A balloon mortgage typically has lower monthly payments for a predetermined period, after which a larger final payment is required to completely pay off the loan. This structure is designed to make initial payments more affordable, but borrowers must be prepared for the significantly larger payment when it becomes due.

The other options do not accurately capture the specific term used in the context of balloon mortgages. While "final payment" and "lump sum payment" might appear to be related, they are too generic and do not convey the unique nature of the balloon payment. "Completion payment" is not a term typically associated with this mortgage type. Understanding this distinction is crucial for real estate professionals and borrowers alike, as it directly impacts financial planning and loan management.