What is a Balloon payment?

[Zachary S.]

I'm new to RE investing and have found an interest in Performing and non-performing notes and am currently trying to absorb as much as possible on the subject. I have been reading a lot of forum posts and listened to a few podcasts on Note investing and am getting a better grasp on how it works but i keep coming across the term "balloon Payment". Can anyone explain what that is / how it works / and why it's beneficial. 

The help on this blog is wonderful and i recommend podcast #28 to anyone trying to learn about investing in Notes!