Finance
A 'balloon payment mortgage' in Colorado is characterized by:
AA. Monthly payments that increase annually
BB. Regular installment payments with a large lump-sum payment due at the end of the loan term✓ Correct
CC. No monthly payments required
DD. A payment that increases when interest rates rise
Explanation
A balloon mortgage requires regular monthly payments (often calculated as if on a longer term) but matures early, requiring the remaining unpaid principal (the balloon) to be paid in full. Balloon loans are riskier for borrowers because they must refinance or pay off the lump sum at maturity.
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