FinanceIntermediateDelaware Exam
A 'balloon mortgage' in Delaware requires the borrower to:
AMake increasing payments over the loan term
BPay off the remaining balance in a lump sum at the end of a set periodCorrect
CPay interest only for the first five years
DMake bi-weekly instead of monthly payments
Why Pay off the remaining balance in a lump sum at the end of a set period Is Correct
Answer B: Pay off the remaining balance in a lump sum at the end of a set period
A balloon mortgage has regular payments (often based on a 30-year amortization) but requires the entire remaining balance to be paid in full as a lump sum at the end of a shorter term (e.g.
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