Finance
A 'balloon mortgage' is characterized by:
AMonthly payments that increase over the loan term
BA large lump-sum payment due at the end of a relatively short loan term✓ Correct
CNo principal payments for the first five years
DAn interest rate that adjusts monthly
Explanation
A balloon mortgage typically features lower monthly payments based on a longer amortization schedule, but requires the remaining balance to be paid in full at the end of a short term (e.g., 5 or 7 years).
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