Finance
A 'balloon mortgage' in Arizona is characterized by:
AMonthly payments that decrease over time
BA large lump-sum final payment due at the end of the loan term✓ Correct
CMonthly payments that increase over time
DNo monthly payments required until the balloon date
Explanation
A balloon mortgage has regular monthly payments (often interest-only or partially amortizing) with a large lump-sum payment due at the end of the term. It is considered higher risk because the borrower must refinance or pay off the balance.
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