Finance
A 'balloon payment' mortgage is characterized by:
AIncreasing monthly payments over the loan term
BSmall periodic payments with a large lump-sum payment due at the end✓ Correct
CNo monthly payments until maturity
DMonthly payments that include both principal and interest from the start
Explanation
A balloon loan has relatively small regular payments (often interest-only or based on a long amortization) with a large final lump-sum payment. Borrowers often plan to refinance or sell before the balloon payment is due.
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