Finance
A balloon mortgage loan requires:
AIncreasing monthly payments over the loan term
BA large lump-sum payment due at the end of the loan term✓ Correct
CEqual monthly payments for the entire loan term
DInterest-only payments throughout
Explanation
A balloon mortgage requires a large final (balloon) payment at the end of the term, which includes the remaining principal balance. Monthly payments may be lower than fully amortizing loans.
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