Finance
A mortgage that requires only interest payments for an initial period, after which the full principal becomes due, is known as a:
AAmortized mortgage
BBalloon mortgage✓ Correct
CReverse mortgage
DWraparound mortgage
Explanation
A balloon mortgage has regular payments (often interest-only or partially amortized) followed by a large lump-sum 'balloon' payment of the remaining principal at the end of the loan term.
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