Finance
What is a 'balloon payment' mortgage?
AA mortgage with payments that increase over time
BA mortgage with a large lump-sum payment due at the end of the loan term✓ Correct
CA mortgage with no down payment
DA mortgage insured by the FHA
Explanation
A balloon payment mortgage has regular monthly payments but requires a large lump-sum payment at the end of the term. The loan is not fully amortized — there's a large balance due at maturity.
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